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
Thanks a lot ammar, very interesting and useful. I think that this indicator desserve to be shared into our indicators library, is it possible that you post it here please? It would attract more the attention of people! Share your ProRealTime code in the library
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