OPEN-SOURCE SCRIPT
Fibonacci Trailing Stop [LuxAlgo]
The Fibonacci Trailing Stop indicator creates a Trailing Stop, based on Fibonacci levels which are retrieved from the latest swing high & low. This provides a Trailing Stop-line.
🔶 USAGE
The Fibonacci Trailing Stop can indicate the current trend direction.
Shadows can also provide potential support/resistance areas.
Users can also display Fibonacci retracements.
🔶 CONCEPTS
🔹 Basic principles
There are 2 basic principles:
Once a trend is established, the Trailing Stop will only update in the direction of the trend:
If a Trailing Stop line is broken, the trend shifts to the other direction
The FTS line is accompanied by a secondary line (colour-filled), created by smaller swings (half of L/R, rounded to above)
EXAMPLES
• New bullish Trend/pattern
• Updating later on
• Bearish Trend -> breached -> New bullish Trend -> Trend is updated later on, and is breached at the end:
• Trend broken -> new Trend/direction:
• Bearish Trend -> breached -> New bullish Trend -> breached -> New bearish Trend (Here you see the latest cross of the bullish trend)
🔹 Shadows & latest Fibonacci
The indicator contains the option to show:
Shadows can be very useful to provide support/resistance areas, especially from large shadow-blocks.
When shadows are enabled, the color fill of Latest Fibonacci and FTS will be removed, this to provide less clutter:
🔶 SETTINGS
🔹 Swings
🔹 Fibonacci Trailing Stop
• Choose pré-set levels [[]-0.5, -0.382, -0.236 , 0, 0.236, 0.382, 0.5, 0.618[]]
• Choose custom level -> Toggle enabled and adjust the number at the right
🔹 Fibonacci
🔶 USAGE
The Fibonacci Trailing Stop can indicate the current trend direction.
Shadows can also provide potential support/resistance areas.
Users can also display Fibonacci retracements.
🔶 CONCEPTS
🔹 Basic principles
There are 2 basic principles:
- Every new swing will create or update a new Fibonacci pattern, potentially changing the Fibonacci Trailing Stop (FTS)
- The Trend depends on whether the FTS is crossed/breached, the trigger is a chosen 'level/trigger'
(settings -> Fibonacci Trailing Stop -> Level/Trigger)
- In an uptrend, these levels will be placed at the bottom half of the pattern.
- In a downtrend, these levels will be placed at the top half of the pattern.
Once a trend is established, the Trailing Stop will only update in the direction of the trend:
- Only higher when in an uptrend
- Only lower when in a downtrend
If a Trailing Stop line is broken, the trend shifts to the other direction
The FTS line is accompanied by a secondary line (colour-filled), created by smaller swings (half of L/R, rounded to above)
EXAMPLES
• New bullish Trend/pattern
• Updating later on
• Bearish Trend -> breached -> New bullish Trend -> Trend is updated later on, and is breached at the end:
• Trend broken -> new Trend/direction:
• Bearish Trend -> breached -> New bullish Trend -> breached -> New bearish Trend (Here you see the latest cross of the bullish trend)
🔹 Shadows & latest Fibonacci
The indicator contains the option to show:
- Latest Fibonacci
- Shadows: previous Fibonacci Levels (will only appear after a 1 bar delay)
Shadows can be very useful to provide support/resistance areas, especially from large shadow-blocks.
When shadows are enabled, the color fill of Latest Fibonacci and FTS will be removed, this to provide less clutter:
🔶 SETTINGS
🔹 Swings
- L: set left of pivothigh/pivotlow
- R: set right of pivothigh/pivotlow
- Swing labels: show labels of swings (updated in the same direction)
🔹 Fibonacci Trailing Stop
- Level - Toggle - Custom value
• Choose pré-set levels [[]-0.5, -0.382, -0.236 , 0, 0.236, 0.382, 0.5, 0.618[]]
• Choose custom level -> Toggle enabled and adjust the number at the right
Trigger: set trigger for breaching the FTS, close or wick (high in downtrend/low in uptrend)
🔹 Fibonacci
- Latest Fibonacci: show Latest Fibonacci
- Shadows: show Shadows
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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Join our 150k+ community: discord.gg/lux
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.