About Fibonacci Retracement
Fibonacci Retracement is a form of technical analysis used to locate points of support, resistance and pivots.
In many cases, Fibonacci lines are self-fulfilling prophecies, this is because many traders set stop loss and take profit targets in accordance with indications of price action provided by Fibonacci lines. Due to the abundance of trader activity associated with Fibonacci Lines, the market will, in most cases, undergo pivot-like behaviour around Fibonacci lines.
The intensity of this pivot-like behaviour will depend on, amongst other non-related factors, the popularity of the Fibonacci parameters used.
Commonly used Fibonacci period settings are very useful assets, they can be found by aligning past Fibonacci lines with past major breakout/pivot points; the liquidity associated with these breakout/pivot points act as strong indicators of whether or not the Fibonacci period settings used were popular.
About Moving Fibonacci
- Moving Fibonacci is a dynamic Fibonacci retracement/extension indicator.
- Retracement lines are automatically drawn in uptrends and Extension lines are automatically drawn in downtrends.
- Swing Low formed from the lowest low of the set period and Swing High formed from the highest high of the set period, between swing high and swing low are the Fibonacci Lines.
- Price_Data_Required - if true, a price line is drawn.
- Period - used to confirm period settings for the indicator, the number of bars taken into consideration when calculating Fibanocci values.