RSI Fibonacci Flow [JOAT]

6 gen

RSI Fibonacci Flow - Advanced Fibonacci Retracement with RSI Confluence

Introduction

RSI Fibonacci Flow is an open-source overlay indicator that combines automatic Fibonacci retracement levels with RSI momentum analysis to identify high-probability trading zones. The indicator automatically detects swing highs and lows, draws Fibonacci levels, and generates confluence signals when RSI conditions align with key Fibonacci zones.

This indicator is designed for traders who use Fibonacci retracements but want additional confirmation from momentum analysis before entering trades.

Originality and Purpose
This indicator is NOT a simple mashup of RSI and Fibonacci tools. It is an original implementation that creates a synergistic relationship between two complementary analysis methods:

• Why Combine RSI with Fibonacci? Fibonacci retracements identify WHERE price might reverse, but they don't tell you WHEN. RSI provides the timing component by showing momentum exhaustion. When price reaches the Golden Zone (50%-61.8%) AND RSI shows oversold conditions, the probability of a successful bounce increases significantly.
• Original Confluence Scoring System: The indicator calculates a 0-5 confluence score that weights multiple factors: Golden Zone presence (+2), entry zone presence (+1), RSI extreme alignment (+1), RSI divergence (+1), and strong RSI momentum (+1). This scoring system is original to this indicator.
• Automatic Pivot Detection: Unlike manual Fibonacci tools, this indicator automatically detects swing highs and lows using a configurable pivot algorithm, then draws Fibonacci levels accordingly. The pivot detection uses a center-bar comparison method that checks if a bar's high/low is the highest/lowest within the specified depth on both sides.
• Dynamic Trend Awareness: The indicator determines trend direction based on pivot sequence (last pivot was high or low) and adjusts Fibonacci orientation accordingly. In uptrends, 0% is at swing low; in downtrends, 0% is at swing high.

Each component serves a specific purpose:

• Fibonacci levels identify potential reversal zones based on natural price ratios
• RSI provides momentum context to filter out low-probability setups
• Confluence scoring quantifies setup quality for position sizing decisions
• Automatic pivot detection removes subjectivity from level placement

Core Concept: RSI-Fibonacci Confluence

The most powerful trading setups occur when multiple factors align. RSI Fibonacci Flow identifies these moments by:

• Automatically detecting price pivots and drawing Fibonacci levels
• Tracking which Fibonacci zone the current price occupies
• Monitoring RSI for overbought/oversold conditions
• Generating signals when RSI extremes coincide with key Fibonacci levels
• Scoring confluence strength on a 0-5 scale

When price reaches the Golden Zone (50%-61.8%) while RSI shows oversold conditions in an uptrend, the probability of a bounce increases significantly.

Fibonacci Levels Explained

The indicator draws nine Fibonacci levels based on the most recent swing:

• 0% (Swing Low/High): The starting point of the move
• 23.6%: Shallow retracement - often seen in strong trends
• 38.2%: First significant support/resistance level
• 50%: Psychological midpoint of the move
• 61.8% (Golden Ratio): The most important Fibonacci level
• 78.6%: Deep retracement - last defense before trend failure
• 100% (Swing High/Low): The end point of the move
• 127.2% (TP1): First extension target for take profit
• 161.8% (TP2): Second extension target for take profit

The Golden Zone

The area between 50% and 61.8% is highlighted as the "Golden Zone" because:

• It represents the optimal retracement depth for trend continuation
• Institutional traders often place orders in this zone
• It offers favorable risk-to-reward ratios
• Price frequently bounces from this area in healthy trends

When price enters the Golden Zone, the indicator highlights it with a semi-transparent box and optional background coloring.

Pivot Detection System

The indicator uses a configurable pivot detection algorithm:

This identifies swing highs and lows by checking if a bar's high/low is the highest/lowest within the specified depth on both sides.

Visual Components

1. Fibonacci Lines
Horizontal lines at each Fibonacci level:

• Solid lines for major levels (0%, 50%, 61.8%, 100%)
• Dashed lines for secondary levels (23.6%, 38.2%, 78.6%)
• Dotted lines for extension levels (127.2%, 161.8%)
• Color-coded for easy identification
• Configurable line width

2. Fibonacci Labels
Price labels at each level showing:

• Fibonacci percentage
• Actual price at that level
• Golden Zone label highlighted
• TP1 and TP2 labels for targets

3. Golden Zone Box
A semi-transparent box highlighting the 50%-61.8% zone:

• Gold colored border and fill
• Extends from swing start to current bar (or beyond if extended)
• Provides clear visual of the optimal entry zone

4. ZigZag Lines
Connecting lines between detected pivots:

• Cyan for moves from low to high
• Orange for moves from high to low
• Helps visualize market structure
• Configurable line width

5. Pivot Markers
Small labels at detected swing points:

• "HH" (Higher High) at swing highs
• "LL" (Lower Low) at swing lows
• Helps track market structure

6. Entry Signals
BUY and SELL labels when confluence conditions are met:

• BUY: RSI oversold + price in entry zone + uptrend + positive momentum
• SELL: RSI overbought + price in entry zone + downtrend + negative momentum
• Labels include "RSI+FIB" to indicate confluence

Confluence Scoring System

The indicator calculates a confluence score from 0 to 5:

• +2 points: Price is in the Golden Zone (50%-61.8%)
• +1 point: Price is in the entry zone (38.2%-61.8%)
• +1 point: RSI is oversold in uptrend OR overbought in downtrend
• +1 point: RSI divergence detected (bullish or bearish)
• +1 point: Strong RSI momentum (change > 2 points)

Confluence ratings:

• STRONG (4-5): Multiple factors align - high probability setup
• MODERATE (2-3): Some factors align - proceed with caution
• WEAK (0-1): Few factors align - wait for better setup

Dashboard Panel

The 10-row dashboard provides comprehensive analysis:

• RSI Value: Current RSI reading (large text)
• RSI State: OVERBOUGHT, OVERSOLD, BULLISH, BEARISH, or NEUTRAL
• Fib Trend: UPTREND or DOWNTREND based on last pivot sequence
• Price Zone: Current Fibonacci zone (e.g., "GOLDEN ZONE", "38.2% - 50%")
• Price: Current close price (large text)
• Confluence: Score rating with numeric value (e.g., "STRONG (4/5)")
• Nearest Fib: Closest key Fibonacci level with price
• TP1 (127.2%): First take profit target price
• TP2 (161.8%): Second take profit target price

Input Parameters

Pivot Detection:

• Pivot Depth: Bars to look back for swing detection (default: 10)
• Min Deviation %: Minimum price move to confirm pivot (default: 1.0)

RSI Settings:

• RSI Length: Period for RSI calculation (default: 14)
• Source: Price source (default: close)
• Overbought: Upper threshold (default: 70)
• Oversold: Lower threshold (default: 30)

Fibonacci Display:

• Show Fib Lines: Toggle Fibonacci lines (default: enabled)
• Show Fib Labels: Toggle price labels (default: enabled)
• Show Golden Zone Box: Toggle zone highlight (default: enabled)
• Line Width: Thickness of Fibonacci lines (default: 2)
• Extend Fib Lines: Extend lines into future (default: enabled)

ZigZag:

• Show ZigZag: Toggle connecting lines (default: enabled)
• ZigZag Width: Line thickness (default: 2)

Signals:

• Show Entry Signals: Toggle BUY/SELL labels (default: enabled)
• Show TP Levels: Toggle take profit in dashboard (default: enabled)
• Show RSI-Fib Confluence: Toggle confluence analysis (default: enabled)

Dashboard:

• Show Dashboard: Toggle information panel (default: enabled)
• Position: Choose corner placement

Colors:

• Bullish: Color for bullish elements (default: cyan)
• Bearish: Color for bearish elements (default: orange)
• Neutral: Color for neutral elements (default: gray)
• Golden Zone: Color for Golden Zone highlight (default: gold)

How to Use RSI Fibonacci Flow

Identifying Entry Zones:

• Wait for price to retrace to the 38.2%-61.8% zone
• Check if RSI is approaching oversold (for longs) or overbought (for shorts)
• Look for STRONG confluence rating in the dashboard
• Enter when BUY or SELL signal appears

Setting Take Profit Targets:

• TP1 at 127.2% extension for conservative target
• TP2 at 161.8% extension for aggressive target
• Consider scaling out at each level

Using the Price Zone:

• "BELOW 23.6%" - Price hasn't retraced much; wait for deeper pullback
• "23.6% - 38.2%" - Shallow retracement; strong trend continuation possible
• "38.2% - 50%" - Good entry zone for trend trades
• "GOLDEN ZONE" - Optimal entry zone; highest probability
• "61.8% - 78.6%" - Deep retracement; trend may be weakening
• "78.6% - 100%" - Very deep; trend reversal possible
• "ABOVE/BELOW 100%" - Trend has likely reversed

Confluence Trading Strategy:

• Only take trades with confluence score of 3 or higher
• STRONG confluence (4-5) warrants larger position size
• MODERATE confluence (2-3) warrants smaller position size
• WEAK confluence (0-1) - wait for better setup

Alert Conditions

Ten alert conditions are available:

• RSI-Fib BUY Signal: Strong bullish confluence detected
• RSI-Fib SELL Signal: Strong bearish confluence detected
• Price in Golden Zone: Price enters 50%-61.8% zone
• New Pivot High: Swing high detected
• New Pivot Low: Swing low detected
• RSI Overbought: RSI crosses above overbought threshold
• RSI Oversold: RSI crosses below oversold threshold
• Bullish Divergence: Potential bullish RSI divergence
• Bearish Divergence: Potential bearish RSI divergence
• Strong Confluence: Confluence score reaches 4 or higher

Understanding Trend Direction

The indicator determines trend based on pivot sequence:

• UPTREND: Last pivot was a low after a high (expecting move up)
• DOWNTREND: Last pivot was a high after a low (expecting move down)

Fibonacci levels are drawn accordingly:

• In uptrend: 0% at swing low, 100% at swing high
• In downtrend: 0% at swing high, 100% at swing low

Bar Coloring

When confluence features are enabled:

• Cyan bars on strong bullish signals
• Orange bars on strong bearish signals
• Gold-tinted bars when price is in Golden Zone

Best Practices

• Use on 1H timeframe or higher for more reliable pivots
• Adjust Pivot Depth based on timeframe (higher for longer timeframes)
• Wait for price to enter Golden Zone before considering entries
• Confirm RSI is in favorable territory before trading
• Use extension levels (127.2%, 161.8%) for realistic profit targets
• Combine with support/resistance and candlestick patterns
• Higher confluence scores indicate higher probability setups

Limitations

• Pivot detection has inherent lag (must wait for confirmation)
• Fibonacci levels are subjective - different swings produce different levels
• Works best in trending markets with clear swings
• RSI can remain overbought/oversold in strong trends
• Not all Golden Zone entries will be successful

The source code is open and available for review and modification.

Disclaimer

This indicator is provided for educational and informational purposes only. It is not financial advice. Trading involves substantial risk of loss. Past performance does not guarantee future results. Fibonacci levels are not guaranteed support/resistance - they are probability zones based on historical price behavior. Always conduct your own analysis and use proper risk management.


- Made with passion by officialjackofalltrades :D

8 gen

Note di rilascio

A new tableSize input with options: "Tiny", "Small", "Normal", "Large"

Three size mapping variables using string type (correct for Pine Script v6):
dashSizeTitle - for the title row
dashSizeLabel - for label cells
dashSizeValue - for value cells

All table.cell() calls use the dynamic size variables