Auto Fibonacci Retracement indicator automates the identification of potential support and resistance levels on a chart using the Fibonacci sequence.
The main idea of the Auto Fibonacci Retracement indicator involves identifying areas of price correction based on Fibonacci ratios, which are widely referenced in technical analysis as potential areas of price reaction.
At its core, Fibonacci retracement theory suggests that after a significant price change (up or down), prices tend to recover a certain portion of that change before continuing the trend or going in the opposite direction. These retracement levels are based on the Fibonacci sequence.
Using the Fibonacci sequence, the Auto Fibonacci Retracement indicator provides a structured way to analyze retracement areas within a price movement. It automates the calculation and visualisation of key Fibonacci retracement levels (23.6%, 38.2%, 50%, 61.8% and 100%) on the price chart. The values for these levels are obtained by taking the two extreme price points, usually the high and low, and dividing the vertical distance between them according to the ratios from the Fibonacci sequence.
Auto Fibonacci Retracement indicator is one tool within the broader context of technical analysis. By understanding the basic concepts of Fibonacci retracements and integrating the indicator into a comprehensive trading strategy that takes into account other technical indicators and fundamental factors, traders can use it as one component within a broader analytical framework that includes other technical and fundamental inputs.
Auto Fibonacci Retracement indicator provides the ability to show or hide certain levels, customise their colors for better visualisation, and set alerts that are triggered when prices touch or cross these levels. Additionally, traders can enable or disable custom levels entirely.
In technical analysis, traders use Auto Fibonacci Retracement for various purposes:
Fibonacci retracement levels are derived from historical price extremes and do not predict future price movement. The levels reflect mathematical ratios applied to past data — they do not account for fundamental factors, news events, or changes in market structure. All displayed levels should be evaluated within a broader analytical context.
The indicator has the following parameters:
Alerts – setting up various types of alerts.
Deviation – multiplier that determines how much the price should deviate from the previous pivot for the bar to register as a new pivot.
We can customize this indicator to your needs — adding functions, modifying logic, or integrating it with other tools for your workflow.
We also convert indicators into Automated Trading Strategies with advanced functions (trailing stops, risk management, filters) tailored to your trading style strictly according to your specifications.
Request a free consultation to discuss the technical 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.
No Financial Advice — Nordman Algorithms does not provide discretionary trading signals, investment advice, or managed signal services. Our software represents a mathematical visualization of historical and real-time data. The appearance of a visual marker does not guarantee a profitable trade or predict future market behavior.
Trading Risk Warning — Futures, Forex, and options trading involve significant risk. Risk capital is money that can be lost without jeopardizing financial security. Only risk capital should be used for trading. Past performance is not indicative of future results. View Full Risk Disclosure: https://www.nordman-algorithms.com/risk-disclosure/
ESMA Risk Warning — Financial instruments, especially those involving leverage such as CFDs and Forex, are complex and carry a high risk of rapid financial loss. Our software provides analytical outputs and visual markers based on predefined mathematical conditions and does not mitigate or reduce inherent market risks. You should carefully consider whether you understand how leveraged financial instruments work and whether you can afford the high risk of losing your capital.
CFTC Rule 4.41 — Hypothetical or simulated performance results have inherent limitations. Unlike actual performance records, simulated results do not represent real trading. Because trades have not actually been executed, these results may under- or over-compensate for the impact of market factors such as liquidity. No representation is being made that any account will achieve profits or losses similar to those shown.
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