Fibo Zone Lite
The indicator displays strong support and resistance areas near the levels of certain type calculated using ZigZag vertices with greater amplitude. The strength of levels is defined by the accumulation of Fibo levels calculated using ZigZag vertices with lower amplitude.
These areas can be considered as potential reversal zones and used to perform trades and fix profit. Potential reversal zones efficiently sort out the signals received from the oscillators.
Also, the functionality for the detection and construction of harmonic 5-points patterns on the basis of the vertices of the ZigZag indicator with greater amplitude is provided. The search is conducted not only by well-known patterns, such as Gartley, Bat, Butterfly, Crab, etc., but by all 5-point patterns having the vertices corresponding the Fibonacci Retracement entered in the indicator settings.
This version has a number of limitations on basic settings, for example, on changing the amplitude of ZigZags used for calculating potentially reversal zones. It works only on H4.
Testing the Indicator
You can test any EA in the visualization mode with Fibo_Zone_Lite indicator installed on the chart.
- Type of Calculation – types of calculation of the main levels and potential reversal zones:
- Levels of greater amplitude – the basis for the potential reversal zones are Fibonacci levels calculated using vertices of the last swing of ZigZag.
- Density around the Harmonic Levels – the basis for the potential reversal zones are similar Fibonacci levels calculated using two last vertices of ZigZag (ABCD).
- Density around the Levels of Crossing Pitchforks – the basis for the potential reversal zones are levels of Andrew’s pitchforks crossing built on the vertices of 5 ZigZag swings (XAB and BCD).
- Create Areas – display the Area.
- Create Levels – display the Levels.
- Create Levels of Crossing Pitchforks – display the Levels of Andrew’s pitchforks.
- Do not create Levels
- Create all Levels
- Create only Levels in Area
- Create Price Labels – display the price label.
- Create Extensions Harmonic Butterflies – form the harmonic pattern development.
- Create Actual Harmonic Butterfly – display the harmonic 5-point pattern.
- Create Sperandeo Trend – display the trend line (Sperandeo method).
* Works only on H4
- Displays ZigZags
- The possibility to display the harmonic 5-point patterns
- The possibility to display the extension of the harmonic 5-point patterns
- The possibility to build a trend line to the big swing ZigZag
- The initialization procedure
- The deinitialization procedure
- Algorithms of objects' colors autoselection
- 3 types of calculation of potential reversal zones.
- The possibility to display the levels of crossing Andrews' Pitchfork, drawn using 5 previous peaks of ZigZag.