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 believed to reflect natural patterns of market behavior.
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 makes it easy to identify potential recovery areas as part of technical analysis. 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 can be a valuable addition to a trader / analyst’s toolkit. 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 improve their decision-making process while maintaining effective risk management practices.
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, creating a truly personalised Fibonacci retracement tool.
In technical analysis, traders use Auto Fibonacci Retracement for various purposes:
The indicator has the following parameters:
Alerts – setting up various types of alerts.
Deviation – multiplier that affects how much the should deviate from the previous pivot in order for the bar to become a new pivot.
We can also turn the indicator into an Automated Trading Strategy with an extended set of custom functions (stop loss, take profit, trailing stop, risk management parameters, trading time limit, and others).
Request a free consultation from our team of professional programmers and find out the cost and timing of your project development.
Nordman Algorithms is not liable for any risk that you face using the software. Please, use the software on your own responsibility. The software is coded in accordance with a common known concept and Nordman Algorithms does not guarantee accuracy or trading performance of the software signals.
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