here’s my first post on this forum, I hope you find it useful:
In this post, I’ll explain how I enhanced Fibo levels, share the code, and the ready indicator attached for convenience.

check the below image

The image is DOW future Hourly chart (Fri 4th Sep), as you see it gives much better bounds to the market compared to Bollinger Bands, I also added a grey color fill between R1/R2 and S1/S2 for more clarity, the lower grey zone would be the ‘ground’ and the upper is the ‘cloud’. Needless to say, the longer time frames (day, week) respects those boundaries even more, but it is stronger proof of my claim to use it on hourly chart.

Conventionally in Fibo levels, it is calculated for last price only, here it is continuous, and visually this one is easier to comprehend.

How to trade it: whenever the price reaches one of the grey zones look for a rebound (swing) or a new trend, a higher time frame would help. as usual wait for 2nd or 3rd confirmation, volume shall confirm the signal.

here’s the pro-real-time code:

parameters:

extreme (boolean) to calculate the range based on open/close or high/low
P (integer) how many candles to search for the range, I suggest 50
av (integer) average period, I suggest 50 also

reason I made P different from av, is to allow the indicator to see more history than the average if needed.

You need a color fill between R1 & R2, S1 & S2
I hide S3, R3 and dif

if extreme then
hh= Highest[P](high)
else
hh = Highest[p](close)
endif

if extreme then
ll=lowest[P](low)
else
ll=lowest[p](close)
endif

PP = (hh + ll + average[av](close)) / 3
dif = (hh - ll)
dif3 = (dif* 1.000)
dif2=(dif * 0.618)
dif1 = (dif * 0.382)
Rr3 = PP + dif3
Rr2 = PP + dif2
Rr1 = PP + dif1

Ss1 = PP - dif1
Ss2 = PP - dif2
Ss3 = PP - dif3

return PP as "Pivot", dif as "Histogram", rr1 as "R1", rr2 as "R2",rr3 as "R3", ss1 as "S1",ss2 as "S2",ss3 as "S3"

AFPivot.itf 0-1.png