Normalized Fibonacci Retracement (MTF/LOG)

A question: Instead of creating indicators that constantly plot Fibonacci Retracement levels in a visually overwhelming way, why don't we redefine them on a different scale? 🤨

Overview
The Normalized Fibonacci Retracement indicator converts price data to a 0-100 scale based on the selected timeframe's high-low range, displaying normalized candlesticks alongside standard Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, 78.6%). This normalization reveals patterns that may be hidden in absolute price charts and allows consistent analysis across different instruments.

Originality
By normalizing prices to percentages, this indicator enables pattern recognition independent of absolute price levels. The same formation at $10-$20 and $1000-$2000 appears identical on the normalized scale, helping traders identify recurring structures across various assets and timeframes.

Concepts
The indicator uses a simple formula to transform price data into percentages. This creates a bounded scale where patterns become comparable regardless of the underlying asset's price range. The normalized view often reveals symmetries and relationships not visible in traditional price charts.

Mechanics
The system tracks highs and lows within the selected timeframe as anchor points. When a new period begins, fresh boundaries are established and prices recalculated. Trend direction is determined by timing of extremes. Linear scaling uses direct percentage calculation, while logarithmic scaling applies exponential interpolation for assets with large percentage moves.

Functions

• Timeframe Selection: Higher timeframe analysis on any chart resolution
  
• Normalized Display: OHLC data converted to 0-100 percentage scale
  
• Fibonacci Levels: Standard retracement levels plotted automatically
  
• Scaling Options: Linear or logarithmic calculation methods
  
• Pattern Recognition: Reveals formations hidden in absolute price charts
  
• Moving Average: Optional 20-period SMA overlay
  

Notes
Ensure chart data covers the full selected timeframe for accurate calculations. Use logarithmic scaling for volatile assets with large percentage moves. The normalized scale is effective at revealing patterns and structures that remain consistent across different price ranges, making it particularly useful for comparative analysis and pattern-based trading strategies.

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