Fibonacci retracements are popular among technical traders. In technical analysis, a Fibonacci retracement is created by taking two extreme points (usually a peak and a trough) on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%. Basic fibo levels are often known to be 14.6%, 23.6%, 38.2%, 50%, 61.8%, 76.4%, 88.6% and 100%.
This indicator will draw the fibonacci levels automatically. Once these levels are identified, horizontal lines are drawn and used to identify possible support and resistance levels including zones. The fibo levels on this indicator gives you the option to use basic fibo or new paradigm fibo levels. New paradigm fibo levels may be new to most traders, however, the application of new paradigm fibo does allow one to trade with least risk due to the precision of the price action surrounding the fibo levels and zones.
One of the most efficient and great ways to apply this auto fibo indicator and the new paradigm fibo is by only leaving the fibo levels that do have hits and un-selecting the fibo levels that do not have any. You can further remove any other levels so you can trade the zones that these fibo levels create.
In addition, you can also switch the timeframe of the fibo from 1D to different number of days to 1W.
just want to know how are the hi lows are decided? does it repaint if it hits the white lines on a same session?
TradersParadigm
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@nilanjan62, Hi. it repaints the hi lows when a new hi lows is established during the same session. The hi lows are based on the setting you choose whether you select 1 day 2 day 3 day a week etc. However, you do have to take into account that some of the hi lows won't be the appropriate hi lows at times if you want to use fibo the right way...sometimes the hi lows may end up working similar to ADR - average daily range which ends up working pretty great as well.