Automatic Fibonacci retracement
This indicator is based on use of Fibonacci retracement. I use Fibonacci levels for last year, month, week and day for important levels, where market stops and turns. These levels are important Price Action levels and market respect them. I do not use here traditional Fibonacci retracement, where you find high and low of certain period - such as big move up and then you look for price to retrace down and buy on fibo levels. This indicator finds high and low of last year, month, week and day and then draw Fibonacci from left to right (from high to low or low to high - it depends, what is first). Then it is good to focus on main trend and trade with trend or scalp countertrend on higher Fibonacci levels (year, month)
Yearly and Monthly Fibonacci are important for intraday trading - when you hold position from 30 minutes up to 1 day. Yearly Fibonacci is also important for swing trading - on D1 charts.
Weekly and daily Fibonacci are important for scalping - when you hold position up to 30 minutes.
Rule says, that higher Fibonacci has higher importance - Yearly Fibo is more important than daily.
In indicator you can basically setup Fibonacci levels, turn ON/OFF lines, color, style on line, width of solid line.
For each period (Year, Month, Week, Day), you can setup:
- Drawing - enable drawing of Fibo levels
- Levels - Fibo levels which are used, separated by comma
- Color - color of levels
- Line Style - style of line - solid, dash, dot, dashdot, dashdotdot
- Line Width - width of line, only valid for solid line
- Text Size - size of text labels
- Distance, Px - distance of text labels from levels