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Fibonacci Dimension

26 August 2022, 09:45

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Traders widely use the Fibonacci retracement and expansion levels as a technical analysis tool to determine price support and resistance, and also to determine the continuation or rejection of a trend. Traders focus on the price reacting at these levels to enter or exit a trade. By applying them on multiple timeframes, you get common price levels that act as key areas of interest. To derive these retracement levels, the previous period/timeframe 'High' and 'Low' values are used for calculation.

We calculate the retracement levels based on the Fibonacci sequence of numbers, whose ratios provide levels where prices retrace, before the trend continues in the original direction. The most used ratio levels are 23.6, 38.2, 50.0, 61.8 and 76.4 or 78.6.

Fibonacci Retracements

While we use the retracement levels as entry signals, Fibonacci strategies use expansion levels for profit taking. The Fibonacci expansion levels consider three points instead of two in case of retracements. Besides the low<->high or high<->low (A and B), the retracement level (C) is considered for the expansion level (D). The expansion levels widely used are 123.6, 161.8 and 200. Traders also use 61.8 and 100 expansion levels to cover positions depending on price retracements. The price may move against the trend, i.e., the retracement levels break the ‘100’ levels (A), taken as reversals. The extended levels in that case are taken as 123.6, 161.8 and 200.

While we use the retracement levels as entry signals, Fibonacci strategies use expansion levels for profit taking. The Fibonacci expansion levels consider three points instead of two in case of retracements. Besides the low<->high or high<->low (A and B), the retracement level (C) is considered for the expansion level (D). The expansion levels widely used are 123.6, 161.8 and 200. Traders also use 61.8 and 100 expansion levels to cover positions depending on price retracements.

The price may move against the trend, i.e., the retracement levels break the ‘100’ levels (A), taken as reversals. The extended levels in that case are taken as 123.6, 161.8 and 200.

'Fibonacci Dimension' indicator allows visual display of the levels described above in its entirety. It automatically takes the previous high and low for two user-defined timeframes and calculates their Fibonacci retracement levels. It also considers the retraced level to draw the expansions on every change of price. The complete visual dimension in multiple timeframes allows deriving profitable strategies for execution.

The functionality included in 'Fibonacci Dimension' indicator are:

Displays the calculated multi-timeframe Fibonacci levels in a dimension for visual clarity.
Includes the previous ‘Year’ for selection as a timeframe for calculation.
Incorporates the additional Sunday candle to the previous Friday and calculates the levels for Monday (Day - D1).
Able to define a Fibonacci retracement level as the mid-range to be displayed in a different color. The display of mid-range color considers the previous timeframe candle (bullish or bearish).
Option to have notification alerts for specified timeframe candle close price, within or outside of the mid-range.
Supports multiple instances of the indicator on the chart to display more sets of timeframe retracements.
Allows to toggle the display of extended line till the start of timeframe period by a mouse click on the level or text.
Customizable formatting of line, font and colors used by the indicator.
Option to show timeframe, level text, along with price for each level.

Also, includes Fibonacci Expansion levels to allow you to strategise your exit of trades. The indicator draws the extended retracement levels in case the price breaks the 100 level.

Product Links:
MT5 version
MT4 version

This document explains the functionalities and is a guide on how to configure the indicator.

Table of Contents

Indicator Settings

	:	You can temporarily disable the indicator rather than deleting it.
	:	Unique identifier for the indicator on the chart. This is useful when multiple instances of "Fibonacci Dimension" with same timeframes is to be shown. Each object shown for the panel is differentiated by the identifier internally to avoid conflict. Change the text for each instance: Fibonacci Dimension - Instance 1 - Indi1 Fibonacci Dimension - Instance 2 - Indi2
	:	Select the option for the Fibonacci Retracements, Extension and Expansion levels. The indicator will take the preset values with the specified inputs or take values from the custom edited files stored in the following folder: Please refer to the "Fibonacci Levels » Custom version » Files" section of this user guide to understand the contents of the custom files. The Fibonacci levels considered in preset version are (shown separated by commas): Retracement: 0,23.6,38.2,50,61.8,76.4,78.6,100 Extension: 123.6,161.8,200 Expansion: 61.8,100,123.6,161.8,200,261.8
	:	Coming soon: Version 3.2 Option to show the extension levels by default: At all times » Will show the extension levels along with the retracement levels. Only when range breached » The extension levels will only be shown in case the current trend changes and the previous Fibonacci level 100 is breached.

Fibonacci Levels » Preset version » Inputs

	:	Indicator allows the selection of 76.4 or 78.6 retracement level.
	:	Choose the Fibonacci Levels from the preset Fibonacci retracement levels to be considered for calculating the mid range values to be displayed for #1 » The Outer Higher timeframe.
	:	Choose the Fibonacci Levels from the preset Fibonacci retracement levels to be considered for calculating the mid range values to be displayed for #2 » The Inner Lower timeframe.

Fibonacci Levels » Custom version » Files

Fibonacci Dimension indicator will automatically generate the requisite folder and copy files with preset values to MetaTrader Data folder (refer Addendum at the end of this user guide on how to access Data folder) under the following path:

MQL<version> \Files\Fibonacci Dimension\Config

The files copied are:

Retracement.txt
Extension.txt
Expansion.txt

The above files can be edited with your preferred Fibonacci levels and saved. You may specify the levels separated by commas. These values will be used by Fibonacci Dimension indicator for calculation and display. The contents of the files are shown in the below:

Fibonacci Levels - Custom Files

NOTE: The mid-range values separated by | in the Retracement.txt file will be considered by both #1 (Higher TF) and #2 (Lower TF). This is unlike the case of preset version where each can be selected as an input.

You can select mid-range levels to be shown as a different color for the outer (#1) and inner (#2) zone. My mid-range display is usually 23.6 to 50.0, as I have noticed these levels have strong support and resistance. Please note that though the input properties and Retracement.txt file has “Mid Value High” and “Mid Value Low”, the indicator supports both the bullish and bearish candle retracement levels and will automatically sort them accordingly for display.

Validation Checks:

Retracement.txt	Contents of the file should contain three sections separated by \| (pipe), as Fibonacci levels Mid-Range Value - High/Low Mid-Range Value - Low/High Fibonacci levels should be separated by , (comma) Values should be within 0 and 100, i.e. >= 0 and <= 100 Mid-Range values should be one of the Fibonacci levels
Extension.txt	Extension levels should be separated by , (comma) Values should be more than 100, i.e. > 100
Expansion.txt	Expansion levels should be seperated by , (comma) Values should be within 0 and 618, i.e. > 0 and <= 618

Configure the Timeframes & Expansion levels

You can select the timeframes used for outer (#1) and inner (#2) zones.

	:	The indicator adds ‘Year’ to the standard timeframes in MetaTrader. You may have noticed that MT5 has additional timeframes than MT4, and the indicator accordingly displays them in the list as per the version of the indicator. Please note that the selected timeframe should be higher than the current period in the chart. For e.g., you cannot have a ‘M30’ timeframe displayed if the current period on chart is ‘H1’. The indicator uses the #1 timeframe to draw the outer zone, while inner zone has the #2 timeframe. #1 timeframe should be higher than #2 timeframe.
	:	You may decide to hide display of the inner (#2) zone. If false, the indicator ignores the values entered for #2.
	:	The indicator allows you to indicate whether the expansion levels are shown for the #1 and #2 time frame. NOTE: The expansion levels are automatically drawn if selected. It will automatically check on the retracement level reached and display the expansion levels automatically.

View and customize (adjust) the Fibonacci Range

The default Fibonacci range taken as the Input parameter for #1 » Outer Timeframe or #2 » Inner Timeframe may need to be adjusted according to user preferred chart period. Fibonacci Dimension indicator allows the user to customise/adjust this default Fibonacci range. The following are the combination keys with mouse click or single key to be pressed.

	The combination of Shift (key) and left mouse click will toggle the viewing or hiding of Fibonacci range taken for calculation by the indicator. The Default Fibonacci range will be according to the timeframe taken for #1 and #2 in the input properties. The default or the customized Fibonacci range can be differentiated by a line drawn for the range. In case of Default range, the line is shown as dots, while the custom Fibonacci range line is drawn as dashes. Default Fibonacci Range » Custom Fibonacci Range » The color of the line can be selected by user in the following input parameter:
	Mouse Click (left click) on the Default or Custom Fibonacci range will select the range and it will be highlighted as a solid line. The Default or the previous custom range can be changed by dragging the mouse to high or low point of the desired candle for chart period. The dragging of line is similar to the selection of Fibonacci levels for MetaTrader. The only difference is regardless of the candle datetime for the selection (from and till), the indicator will automatically take the high and low (for selected datetime range) for calculation of Fibonacci levels. Click again on the line to confirm the range selection. The indicator will accordingly change the line selection from solid to either dot or dash line. Please note: The Custom Fibonacci Range is only shown for lesser or equal to chart period in which the selection of custom range was done. For the higher chart period the indicator will apply the default Fibonacci range as applicable. The chart period will be shown in the tooltip for the Fibonacci Range line. For custom Fibonacci Range, the display of the dimension is shown from start of the range, while for the Default, it is drawn from the current timeframe start time. Only for the Default Fibonacci Range, the #1 or #2 timeframe will be shown as the Level Text, if chosen.
	When Custom Fibonacci Range line is selected, pressing the Delete key will remove the custom setting for the Fibonacci range and the default timeframe setting will be considered for calculation, as applicable.

The combination of Shift (key) and left mouse click will toggle the viewing or hiding of Fibonacci range taken for calculation by the indicator. The Default Fibonacci range will be according to the timeframe taken for #1 and #2 in the input properties.

The default or the customized Fibonacci range can be differentiated by a line drawn for the range. In case of Default range, the line is shown as dots, while the custom Fibonacci range line is drawn as dashes.

Default Fibonacci Range »

Custom Fibonacci Range »

The color of the line can be selected by user in the following input parameter:

Mouse Click (left click) on the Default or Custom Fibonacci range will select the range and it will be highlighted as a solid line.

The Default or the previous custom range can be changed by dragging the mouse to high or low point of the desired candle for chart period. The dragging of line is similar to the selection of Fibonacci levels for MetaTrader. The only difference is regardless of the candle datetime for the selection (from and till), the indicator will automatically take the high and low (for selected datetime range) for calculation of Fibonacci levels.

Click again on the line to confirm the range selection. The indicator will accordingly change the line selection from solid to either dot or dash line.

Please note:

The Custom Fibonacci Range is only shown for lesser or equal to chart period in which the selection of custom range was done. For the higher chart period the indicator will apply the default Fibonacci range as applicable. The chart period will be shown in the tooltip for the Fibonacci Range line.
For custom Fibonacci Range, the display of the dimension is shown from start of the range, while for the Default, it is drawn from the current timeframe start time.
Only for the Default Fibonacci Range, the #1 or #2 timeframe will be shown as the Level Text, if chosen.

When Custom Fibonacci Range line is selected, pressing the Delete key will remove the custom setting for the Fibonacci range and the default timeframe setting will be considered for calculation, as applicable.

Displaying the Outer and Inner Zones

The indicator allows you to configure the display of the outer and inner zone. In case over one set of multiple timeframes is required (multiple instances of the indicator), this section explains on how it can be done.

	:	The indicator allows following options for start of zone display: 1. Start as per selected TF - The start of the zone is from the time of the selected timeframe (as current). 2. Start from the Current Bar - The zone starts from the current bar of the chart period. 3. Show as per Bar Width - This option displays the complete zone ahead of the current bar. For this option, it considers the Zone Width value, otherwise ignored. This option enables support for multiple instances of the indicator on the chart. The indicator uses the values for “Zone ends ahead from Current Bar” and the “Zone Width” in conjunction. For e.g., Instance 1: Instance 2: Please note that in case the option is “Start from the Current Bar” or “Show as per Bar Width”, any left click of the mouse on the line or text will toggle the display of level line extended to the Timeframe start time and as per selected option.

Notification Alerts

Notification alerts can be set for crossovers of the outer (#1) or inner (#2) mid range.

	:	A notification alert will be triggered if candle for specified timeframe closes inside or outside the mid-range. The previous candle close should be on other side of the level. For e.g. As shown below, the first notification will sound at ➀ when the candle close enters the mid-range and the second notification at ➁, when the close price exits the range continuing the down trend. The default notification sound for the outer (#1) mid-range crossover is of a horse, while the inner (#2) range crossover has a cat notification sound. This can be changed by having a custom ".wav" file. The indicator will create the "Sounds" folder automatically. You can access it under the MetaTrade Data folder under the following path: MQL<version> \Files\Fibonacci Dimension\Sounds You may copy your favourite .wav file and specify its name as an input. Please note that only .wav files are supported. The indicator will play the default sound in case the file is not found. Please refer to the Addendum at the end of this User Guide to know on how to access the Data folder.
	:	If the Mobile Notification and/or Email configuration has been configured correctly, if selected, the above condition will trigger a mobile notification and/or an email. To know more about configuring Mobile and Email Notification, you may refer to the MetaQuotes website.

Styling and Formatting

Below explains on how you can configure the displayed line, text and colors used by the indicator.

	:	You can configure the contents of the text label shown with the retracement levels. The following are the options: 1. Only Level Text 2. Timeframe with Level 3. Level with Price 4. Level with Timeframe and Price 5. No text
	:	Following are the styles for the line displayed for the levels: 1. Solid 2. Dash 3. Dot 4. Dashdot 5. Dashdotdot Only the ‘Solid’ line can have the thickness greater than 1.
	:	You can customise the color for the line displayed for retracement levels for outer (#1) and inner (#2) timeframes. It can apply the line color for: 1. Also apply to High/Low and Mid Range Lines 2. Apply only to High/Low but not the Mid Range Lines 3. Apply only to Mid Range Lines but not to High/Low Lines 4. Do not apply to High/Low and the Mid Range Lines The indicator displays the default color of the outer fill or mid range, if you want the line color not to apply for any level. Indicator also allows a selection of color for the expansion levels.
	:	Choose the color of the line showing the high and low (selected) of the custom Fibonacci range.
	:	You can customise the Font, its size and color displayed as text by the indicator.
	:	The indicator allows the selection of color to be filled by the outer (#1) and inner (#2) zones. Depending on the trend of the previous Timeframe (bullish or bearish) candle, the mid range color will change.

Please note:

The indicator will show errors in “Journal” and “Experts” tabs of the terminal/toolbox (Ctrl+T) window.

Disclaimer: Past performance may not show future results. You cannot hold me responsible for use of the indicator or for any information provided in this document.

Addendum

Following are the steps to add custom files (.wav) for notification alerts:

Access the terminal_data_folder\MQL<version>\Files\Fibonacci Dimension\Sounds (in the terminal menu select to view "File" - "Open Data Folder" or by clicking Ctrl+Shift+D on MQL5)
Copy your favourite sound files as the notification alert sounds and specify them as inputs for Fibonacci Dimension indicator.

#Support and Resistance, Fibonacci retracement, fibo levels, fibo expansion, fibo extension

Devonish 2024.05.18 13:37 #1

An excellent companion to the indicator. Thank you.

Ken Duigraha Putra 2024.10.25 06:42 #2

Hi thanks for created this indicator

I've used it in the past several weeks, it worked well on my MT4 but unfortunately the extension levels aren't shown. It only show retracement and expansion levels

Any idea how to display the extension levels?

Thank you

Keni Chetankumar Gajanan - 2024.10.25 13:05 #3

Ken Duigraha Putra #:
Hi thanks for created this indicator

I've used it in the past several weeks, it worked well on my MT4 but unfortunately the extension levels aren't shown. It only show retracement and expansion levels

Any idea how to display the extension levels?

Thank you

Hi Ken,

Thanks for the message. I am glad you have found the indicator useful. I have tried to explain your query below as a bullish trend and have noted the extension (retracement) levels in red.

The extension levels will be shown only when the price retraces more than the Fibonacci range considered for the retracement levels.

For the bullish trend, if the price falls below 100, the extension levels are shown. You may note that the extension level values are greater than 100. The extension levels indicate the levels where the price may find support. In case the price closes below 100 for the considered period/timeframe, then the trend has reversed.

I hope the above clarifies.

Ken Duigraha Putra 2025.03.14 12:16 #4

Keni Chetankumar Gajanan - #:

Hi Ken,

Thanks for the message. I am glad you have found the indicator useful. I have tried to explain your query below as a bullish trend and have noted the extension (retracement) levels in red.

The extension levels will be shown only when the price retraces more than the Fibonacci range considered for the retracement levels.

I hope the above clarifies.

Thanks for your explanation. That makes sense! I appreciate the clarification on how the extension levels appear only when the price retraces beyond the Fibonacci range. Understanding that these levels act as potential support areas in a bullish trend is helpful.

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