Auto Fibonacci indicator draws Fibonacci levels automatically. This tool makes all the calculations and updates all levels when new highs and lows appear. Traders can switch between modes (choosing extensions or retracements).
The indicator also reflects the strength of directional momentum — extension levels project how far price may move beyond the prior swing if trend conditions persist. By using this technical analysis tool market participants can evaluate price position relative to correction depth and extension targets within the broader trend context. By using Automatic Fibonacci Retracement & Extension, one can set the colors of each level. Additionally, there is an option to set Fibonacci alerts on those levels.
This Fibonacci indicator includes special Auto Fibo Trade Zones allowing traders to evaluate price behavior within overbought and oversold zones. Traders can set alerts that will alert them about various important events (a breakout of a certain level etc.).
Auto Fibonacci Retracement indicator includes additional levels apart from standard Fibo levels. Traders can turn on/off some levels, which will prevent them from appearing on the chart.
Fibonacci retracement levels reflect historically significant price proportions — commonly referenced as support and resistance zones within technical analysis. Retracement levels display the depth of correction relative to the prior directional move. As for Fibonacci extensions, those levels show the potential of the waves in the direction of the trend.
These levels represent historically significant retracement zones — 23.6%, 38.2%, 61.8%, and 78.6% — where price has previously shown interaction within uptrend corrections.
During downtrends, retracement levels reflect resistance zones where upside corrections have historically shown price interaction — the same structural logic applies in reverse.
Retracement levels are also referenced as structural boundaries for risk parameter definition within a position management framework. The 23.6% level is commonly used as a reference point in this context.
It is worth noting that price may move through several retracement levels before trend momentum resumes. In such cases, Fibonacci extension levels provide additional structural reference points at progressively deeper retracement zones — 23.6%, 38.2%, 61.8% — allowing analysts to evaluate price behavior at each level as the move develops.
Fibonacci extension levels are plotted in the direction of the prevailing trend — above current price during an uptrend and below during a downtrend. Unlike retracement levels which reflect correction depth, extension levels project how far price may move beyond the prior swing high or low if the trend continues.
During an uptrend, extension levels appear above the retracement zone and represent areas where upward momentum has historically shown interaction — including potential slowdown or reversal of the directional move. During a downtrend, extension levels are plotted below the retracement zone and function symmetrically, reflecting the same structural logic in the opposite direction.
The Auto Fibonacci indicator calculates and displays both retracement and extension levels automatically — updating them as new price extremes form, without requiring manual adjustment.
When there is no definite trend on the market, the indicator evaluates price position relative to configurable oversold and overbought boundaries.
When the indicator operates in range mode, the oversold and overbought zones function as structural boundaries for evaluating price position within the range. A bullish condition is registered when price moves above the oversold level — reflecting a potential shift from compressed to expanding momentum in an upward direction. A bearish condition is registered when price moves below the overbought level — reflecting the same dynamic in a downward direction.
Price moving within the oversold or overbought zones — rather than crossing their boundaries — is generally considered a lower-context area for evaluation, as the directional bias remains undefined while price stays inside these ranges. The more significant analytical event is the boundary crossing itself.
The oversold and overbought levels also function as structural reference points for risk parameter definition. The oversold level represents a logical structural boundary on the downside when evaluating bullish conditions — a move back below it would indicate the registered condition has not held. The overbought level functions symmetrically for bearish conditions.
Fibonacci levels are derived from historical price extremes and mathematical ratios. They do not predict future price movement. All displayed levels represent analytical reference points and should be evaluated within a broader market context that includes other technical and fundamental factors.
This indicator’s settings menu includes many parameters. The most important are:
bars_to_calculate – a number of bars to be calculated to define Fibonacci levels
calculation_mode – sets one of the two modes (Retracement or Extension)
deviation – defines the deviation from the previous reversal point for the bar to become a new reversal point
show_prices_chart – allows the showing of the price on the Fibonacci level
show_value_levels – allows the showing of levels on the chart
display_levels_type – allows the showing of values and percentage levels
show_trade_zone – sets oversold/overbought levels
There are plenty of other settings related to levels. They allow users to display or to hide levels on the chart, change their colors, set alerts when the price breaks a certain level out or down. Additionally, traders can switch on or off non standard levels.
We can customize this indicator to your requirements by adding new features, modifying calculation logic, or combining multiple tools into a unified solution.
We also develop automated trading strategies (Expert Advisors) based on custom logic. The system can include configurable management modules such as dynamic risk parameters, multi-stage trailing stops, additional confirmation filters, and other custom functionality based on your specifications.
The final solution is delivered with full source code and post-delivery support. Contact us for a free consultation to discuss the scope and timeline of your project.
We are committed to the ongoing development and refinement of our indicators. If you’ve spotted a bug, feel that something essential is missing, or have ideas that could make the indicator even better, just send us a message. Your feedback helps us improve and deliver tools that truly meet traders’ needs.
Nordman Algorithms is a trade name of Nordman Algorithms OÜ (Reg. No. 14435535), registered in Tallinn, Estonia.
Software Nature & User Responsibility — Nordman Algorithms provides algorithmic software tools for technical analysis. Nordman Algorithms is not a financial advisor and is not liable for any losses. All trades conducted based on the software’s output are executed at the user’s sole discretion and risk.
Visual Markers & Signal Disclosure — This software may display visual markers (such as arrows, dots, or alerts) when predefined mathematical conditions are met. These markers are provided for educational and analytical purposes only, must not be interpreted as financial guidance, and do not constitute a recommendation to buy, sell, or hold any financial instrument. Users must independently validate all visual cues within their own trading methodology.
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