Fibonacci Retracement MTF/LOG

10 ore fa

In Pine Script, there’s always a shorter way to achieve a result. As far as I can see, there isn’t an indicator among the community scripts that can produce Fibonacci Retracement levels (linear and logarithmic) as multiple time frame results based on a reference 🍺 This script, which I developed a long time ago, might serve as a starting point to fill this gap.

OVERVIEW
This indicator is a short and simple script designed to display Fibonacci Retracement levels on the chart according to user preferences, aiming to build the structure of support and resistance.

ORIGINALITY
This script:

• Can calculate 'retracement' results from higher time frames.
  
• Can recall previous time frame results using its reference parameter.
  
• Performs calculations based on both linear and logarithmic scales.
  
• Offers optional multipliers and appearance settings to simplify users’ tasks
  

CONCEPTS
Fibonacci Retracement is a technical analysis tool used to predict potential reversal points in an asset's price after a significant movement. This indicator identifies possible support and resistance levels by measuring price movements between specific points in a trend, using certain ratios derived from the Fibonacci sequence. It is based on impulsive price actions.

MECHANICS
This indicator first identifies the highest and lowest prices in the time frame specified by the user. Next, it determines the priority order of the bars where these prices occurred. Finally, it defines the trend direction. Once the trend direction is determined, the "Retracement" levels are constructed.

FUNCTIONS
The script contains two functions:

• f_ret(): Generates levels based on the multiplier parameter.
  
• f_print(): Handles the visualization by drawing the levels on the chart and positioning the labels in alignment with the levels. It utilizes parameters such as ordinate, confirmation, multiplier, and color for customization
  

NOTES
The starting bar for the time frame entered by the user must exist on the chart. Otherwise, the trend direction cannot be determined correctly, and the levels may be drawn inaccurately. This is also mentioned in the tooltip of the TimeFrame parameter.

I hope it helps everyone. Do not forget to manage your risk. And trade as safely as possible. Best of luck!