FIBS S/R Indicator

Hello,

I've decided to publish a new script. The previous version of this script was removed by admins for breaking community rules.

So I present to you the Fibonacci Support / Resistance.




1. How does it work

Ratio plots

I first take the input of pivot look back and search for pivots high and low.

And then it takes a second look back to search highest high and lowest low to establish the top bottom range.

Then using the top and bottom I plot ratios provided as input. Defaults to most relevant 5 ratios I've found (Fibonacci):

• Ratio 0 = 0 - can't be changed
  
• Ratio 1 = 0.5
  
• Ratio 2 = 0.618
  
• Ratio 3 = 1
  
• Ratio 4 = 1.618
  
• Ratio 5 = 2.618
  

Any changes done to these ratios should be in order, otherwise conditions could get messed up. So R1 needs to the lowest and R5 the highest.

Also the same ratios are used in reverse as negative ratios.
There is a option to plot all ratios but gets really confusing for me but maybe for you it works. By default there are certain conditions set so that as we go up new resistance ratio get displayed and as we go down we see new resistance plots.


Trendlines
I've also added some automatic trendline plots with breakout warning labels based on the pivots high and low. Start and end for trendlines can be changed via inputs.
Labels can be deactivated via input. On a older version the trendlines and labels where not removed from the chart but I felt like there was to much information.

Overcooked/Undercooked
I've also added some fills and background colors that indicate if the price action is over R5 or under Negative R5 ratios. This usually indicates some "overcooking" or "undecooking".
I've notices that after "crossunder"/"crossover" top bottom ratios it goes in consolidation or it dumps. So then I plot a bgcolor to signal that.

2. How to use it

Using plot lines we can determine where we have support and resistance. I found that the best way to use the default ratios values is on the 1H chart. Very good for trading on crypto because of current situation in the market where there is a lot of new people entering the space and volatility and sentiment make swings respect the Fibonacci ratios.

3. Examples
For instance lets look at BTCUSDT .
On the left we see that the price action between 20 and 21 February was "overcooked". So after we got the signal that we "crossunder" the R5 the signal was triggered and we got a small red candle followed by a small dip and after that we got a small bounce and a dump.
If we also look at MF-RSI we can also see we got multiple bear divs.
Lets entertain the idea that we went short at ~57.1k as soon as we get signaled and it starts dumping.

Where does it stop ?

We can see it went all the way down to Negative R5 ratio. Normally that should signal "undercooking" but this was not triggered as it did not close under it (signaled in green).
We can also see that previous support now becomes resistance (signaled in red).

If we take a look at BTCUSDT , we do see that the "undercooking" was triggered here.

I will be publishing a more detailed Idea with examples of using this on the BTCUSDT chart in combination with Volume and other technical analysis.

Use with caution, this is not 100% signal indicator as the markets do what they want. But by using this in combination with other indicators like MF-RSI, EMAs and regular patterns we can get some targets for Support/Resistance.

I'm trying to create a strategy based on this indicator but I'm not getting very good results. Best results were on the 15 min chart with gross profits around ~50%.

Please try to play around with the inputs and let me know if you find something interesting, maybe I can incorporate new features in the indicator.

You can find the MF-RSI indicator here