⚜️SMB Golden Rate⚜️The ⚜️SMB Golden Rate⚜️ indicator is designed to automatically calculate key support and resistance levels across multiple timeframes and present them in a simple, user-friendly table. This tool helps traders make better trading decisions based on real-time market analysis.
Key Features
Automatic Support and Resistance Calculation:
Utilizes Heikin Ashi data to calculate support and resistance levels.
Multi-Timeframe Display:
Displays daily (Daily), 4-hour (4H), and hourly (1H) support and resistance levels in a detailed table.
Interactive Table:
Clearly organizes pivot levels (Pivot), supports, and resistances by timeframe.
Price Change Tracking:
Shows percentage changes relative to the previous day's closing price.
Fibonacci Levels:
Includes Fibonacci retracement levels to identify potential entry and exit points.
Customizable Timeframes:
Allows customization of timeframes for Fibonacci and other components to suit different trading strategies.
This indicator is ideal for:
Day Traders: Identify key support and resistance levels for intraday trading.
Swing Traders: Make better decisions around critical price ranges.
Scalpers: Find quick entry and exit points effectively.
Adding the Indicator to Your Chart:
Search for ⚜️SMB Golden Rate⚜️ in the "Indicators" section on TradingView and add it to your chart.
Support and Resistance Table:
Columns include values for Daily, 4H, and 1H timeframes.
Levels R3, R2, and R1 indicate resistances, while S3, S2, and S1 indicate supports.
Fibonacci Analysis:
Fibonacci levels are displayed as colored lines:
Red: Dangerous Zone
Orange: Confirmation Zone
Green: Ideal Entry Levels
Price Change Tracking:
A table displays the percentage price change compared to the previous day’s close.
This indicator is crafted to assist traders in making precise trading decisions by focusing on real-time market analysis. With multi-timeframe support, pivot levels, and Fibonacci tools, the ⚜️SMB Golden Rate⚜️ provides deep insights into price movements, helping you trade with confidence.
Multitimeframe
SUPERDUPER TRENDThe Supertduper Trend strategy is a technical trading strategy that combines the Supertrend indicator with other trading tools or techniques to improve decision-making and increase the chances of profitable trades. The Supertrend itself is a popular trend-following indicator that helps traders determine the direction of the market (uptrend or downtrend) and provides buy and sell signals. It is based on the Average True Range (ATR) and a multiplier value to determine the distance from the price at which the trend reversal occurs.
Key Elements of the Supertrend Indicator:
ATR (Average True Range): The ATR is used to measure market volatility. The higher the ATR, the wider the Supertrend indicator’s bands, and the more volatile the market.
Multiplier: This value, typically between 1.5 and 3, determines how sensitive the Supertrend indicator is to price movements. A higher multiplier creates wider bands, while a lower multiplier makes the bands closer to the price.
Trend Signals:
Buy Signal: When the price crosses above the Supertrend line, signaling the start of an uptrend.
Sell Signal: When the price crosses below the Supertrend line, signaling the start of a downtrend.
Superduper Trend Strategy Overview:
The Superduper Trend strategy involves the following elements:
Combining Supertrend with Other Indicators: Traders often combine the Supertrend with other technical indicators like the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), or Moving Averages (SMA/EMA) to confirm signals or refine entry/exit points.
MACD: This is used to detect the strength and direction of the trend, confirming whether the trend is likely to continue or reverse.
RSI: This helps determine overbought or oversold conditions, providing a clearer view of when to enter or exit a position.
Moving Averages: These can be used to confirm the long-term trend direction and smooth out price fluctuations for clearer decision-making.
Trade Confirmation and Filter:
Trend Confirmation: A trader might wait for the Supertrend indicator to provide a confirmed buy or sell signal (price crossing the Supertrend line) and then use another indicator like MACD or RSI to confirm the strength of the signal.
Avoiding False Signals: Traders may set conditions to avoid false signals by waiting for additional confirmations or using filters, such as price action patterns or volume analysis.
Risk Management:
Stop-Loss & Take-Profit Levels: The Superduper Trend strategy often involves setting stop-loss levels just below the Supertrend line in an uptrend or above the line in a downtrend. The distance from the current price is typically determined by the ATR and multiplier.
Trailing Stops: Some strategies involve using a trailing stop-loss, which follows the price as it moves in the trader's favor, locking in profits while allowing the trade to continue to the next key level.
Timeframes: The Superduper Trend strategy can be applied on different timeframes, but it’s typically more effective on longer timeframes (e.g., 1-hour, 4-hour, daily) to reduce noise and avoid short-term price fluctuations that could lead to false signals.
Example of Superduper Trend Strategy in Action:
Buy Setup:
The price crosses above the Supertrend line.
MACD is positive (indicating upward momentum).
RSI is not overbought (e.g., RSI is below 70).
A long position is taken with a stop-loss just below the Supertrend line or an ATR-based level.
Sell Setup:
The price crosses below the Supertrend line.
MACD is negative (indicating downward momentum).
RSI is not oversold (e.g., RSI is above 30).
A short position is taken with a stop-loss just above the Supertrend line or an ATR-based level.
Advantages of the Superduper Trend Strategy:
Simple to Use: The Supertrend indicator is easy to understand, making it suitable for both beginner and experienced traders.
Trend-Following: It captures larger market moves by focusing on trends.
Versatility: It can be applied across different timeframes and asset classes, including stocks, forex, and commodities.
In conclusion, the Superduper Trend strategy is most effective when combined with other confirming indicators and used in trending markets. By leveraging the Supertrend’s ability to signal trends, along with tools for confirmation and risk management, traders can improve the reliability of their trade entries and exits.
Fibonacci CrossesA Fibonacci Moving Average Cross is a technical analysis strategy used in financial markets that combines the concept of moving averages with the Fibonacci sequence to identify potential buy or sell signals. The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding ones, and it appears in various aspects of natural and financial systems. The Fibonacci retracement levels (such as 23.6%, 38.2%, 50%, 61.8%, and 100%) are often used to identify potential support and resistance levels.
In the Fibonacci Moving Average Cross strategy, two moving averages are typically employed: one with a shorter period (faster moving average) and another with a longer period (slower moving average). These moving averages are often based on Fibonacci numbers such as 8, 13, 21, 34, and so on. For example, a trader might use a 13-period moving average and a 21-period moving average.
The "cross" in this context refers to when the faster moving average crosses above or below the slower moving average, signaling a potential change in trend:
Bullish Cross (Golden Cross): When the shorter-term Fibonacci moving average crosses above the longer-term Fibonacci moving average, it can indicate a potential upward trend or buy signal.
Bearish Cross (Death Cross): When the shorter-term Fibonacci moving average crosses below the longer-term Fibonacci moving average, it can signal a potential downward trend or sell signal.
The Fibonacci levels are thought to align with key market reversal points, adding further significance to the crossovers. Traders use Fibonacci Moving Average Crosses to identify trends, confirm other technical signals, and set entry and exit points with greater precision.
Fibonacci Moving Average Crosses are a tool used to detect momentum shifts and trend reversals, combining the historical significance of Fibonacci ratios with the practical application of moving averages in trading strategies.
How a Trader would use this indicator:
1) Plot a higher value Fibonacci sequence.
2) Take buy/sell signals using a smaller value Fibonacci sequence
BFX Buy and SellThe BFX Buy and Sell Strategy is a cutting-edge trading tool designed to help you navigate the markets with confidence.
This strategy simplifies decision-making by delivering precise buy and sell signals, ensuring you’re always one step ahead of market trends. Perfect for traders of all experience levels, it offers clean visuals and reliable alerts to maximize your trading potential.
Whether you’re looking to fine-tune your strategy or seeking a fresh approach to trading, the BFX Buy and Sell is your ultimate partner for smarter, more efficient trading.
Developed by
Jc Golden
BeardedFX
www.beardedfx.net
Simplified QM and Supply-DemandCara Membaca Indikator
Sinyal Buy:
Panah hijau akan muncul di bawah candlestick jika ada pola Bullish Engulfing di area swing low.
Sinyal Sell:
Panah merah akan muncul di atas candlestick jika ada pola Bearish Engulfing di area swing high.
Garis QM:
Garis kuning horizontal menunjukkan tingkat Quasimodo (QM).
Optimized MGC Futures Strategy | Dynamic R:RONLY for 1 hour timeframe, it takes fundamentals into consideration
Dynamic Customizable 50% Line & Daily High/Low + True Day OpenA Unique Indicator for Precise Market-Level Analysis
This indicator is a fully integrated solution that automates complex market-level calculations and visualizations, offering traders a tool that goes beyond the functionality of existing open-source alternatives. By seamlessly combining several trading concepts into a single script, it delivers efficiency, accuracy, and customization that cater to both novice and professional traders.
Key Features: A Breakdown of What Makes It Unique
1. Adaptive Daily Highs and Lows
Automatically detects and plots daily high and low levels based on the selected time frame, dynamically updating in real time.
Features session-based adjustments, allowing traders to focus on levels that matter for specific trading sessions (e.g., London, New York).
Fully customizable styling, visibility, and alerts tailored to each trader’s preferences.
How It Works:
The indicator calculates daily high and low levels directly from price data, integrating session-specific time offsets to account for global trading hours. These levels provide traders with clear visual markers for key liquidity zones.
2. Automated ICT 50% Range Line
A pioneering implementation of ICT’s mid-range concept, this feature dynamically calculates and displays the midpoint of the daily range.
Offers traders a visual guide to identify premium and discount zones, aiding in determining market bias and potential trade setups.
How It Works:
The script calculates the range between the day’s high and low, dividing it by two to generate the midline. This line updates in real-time, ensuring that traders always see the most current premium and discount levels as price action evolves.
3. Dynamic Market Open Levels
Plots session opens (e.g., Asia, London, New York) and the True Day Open to provide actionable reference points for intra-day trading strategies.
Enhances precision in identifying liquidity shifts and aligning trades with institutional price movements.
How It Works:
The indicator uses predefined session times to calculate and display the opening levels for key trading sessions. It dynamically adjusts for time zones, ensuring accuracy regardless of the trader’s location.
4. Custom Watermark for Enhanced Visualization
Includes an optional watermark feature that allows users to display custom text on their charts.
Ideal for personalization, branding, or highlighting session notes without disrupting the clarity of the chart.
Why This Indicator Stands Out
First-to-Market Automation:
While the ICT 50% range line is a widely recognized concept, this is the first script to automate its calculation, combining it with other pivotal trading levels in a single tool.
All-in-One Functionality:
Unlike open-source alternatives that focus on individual features, this script integrates daily highs/lows, mid-range levels, session opens, and customizable watermarks into one cohesive system. The consolidation reduces the need for multiple indicators and ensures a clean, efficient chart setup.
Dynamic Customization:
Every feature can be adjusted to align with a trader’s strategy, time zone, or aesthetic preferences. This level of adaptability is unmatched in existing tools.
Proprietary Logic:
The indicator’s underlying calculations are built from scratch, leveraging advanced programming techniques to ensure accuracy and reliability. These proprietary methods differentiate it from similar open-source scripts.
How to Use This Indicator
Apply the Indicator:
Add it to your TradingView chart from the library.
Configure Settings:
Use the intuitive settings panel to adjust plotted levels, colors, styles, and visibility. Tailor the indicator to your trading strategy.
Incorporate into Analysis:
Combine the plotted levels with your preferred trading approach to identify liquidity zones, establish market bias, and pinpoint potential reversals or entries.
Stay Focused:
With all key levels automated and updated in real time, traders can focus on execution rather than manual plotting.
Originality and Justification for Closed Source
This script is closed-source due to its unique combination of features and proprietary logic that automates complex trading concepts like the ICT 50% range line and session-specific levels. Open-source alternatives lack this level of integration and customization, making this indicator a valuable and original contribution to the TradingView ecosystem.
What Sets It Apart from Open-Source Scripts?
Unlike open-source tools, this indicator doesn’t just replicate individual features—it enhances and integrates them into a seamless, all-in-one solution that offers traders a more efficient and effective way to analyze the market.
EMA & ATR Dynamic Trend BandThis indicator combines an Exponential Moving Average (EMA) with an Average True Range (ATR)-based trailing stop to create a dynamic band that adapts to price action.
When the band is below the price, it acts as dynamic support, highlighting an area ideal for long trades. Traders can enter trades within this zone while managing risk using the ATR line as a stop-loss guide.
When the band is above the price, it acts as dynamic resistance, identifying optimal zones for short trades with the ATR line as the stop-loss.
The band changes color to provide visual feedback on momentum: green when the EMA or ATR suggests upward support and red when it indicates downward resistance. While the color may occasionally shift during volatile moves (e.g., price spikes), these areas often represent prime entry opportunities within a larger trend.
This indicator is highly customizable and serves as a versatile tool for identifying support and resistance zones, managing risk, and fine-tuning trade entries and exits.
Custom EMA (5)The Custom EMA (5) indicator is a versatile tool for traders that provides five fully adjustable Exponential Moving Averages (EMAs) to suit various trading strategies and timeframes. With customizable lengths and enable/disable toggles for each EMA, this script empowers traders to focus on the EMAs that matter most to their strategy.
Features:
Five Adjustable EMAs:
EMA 1 (Default: 20, Red)
EMA 2 (Default: 50, Orange)
EMA 3 (Default: 100, Aqua)
EMA 4 (Default: 200, Blue)
EMA 5 (Default: 9, Green)
Customize each EMA length based on your trading style or specific market conditions.
Enable/Disable Each EMA:
Toggle any of the five EMAs on or off directly from the settings panel, allowing you to declutter your chart or focus on specific trends.
Dynamic Trend Analysis:
Use shorter EMAs (e.g., EMA 5 and EMA 20) to capture immediate price action and crossovers.
Leverage longer EMAs (e.g., EMA 100 and EMA 200) for identifying medium- to long-term market trends.
Clean Visualization:
Each EMA is color-coded for easy trend identification:
EMA 1: Red
EMA 2: Orange
EMA 3: Aqua
EMA 4: Blue
EMA 5: Green
How to Use:
Scalping:
Use shorter EMAs like EMA 5 and EMA 20 for quick momentum signals.
Day Trading/Swing Trading:
Combine EMA 20, EMA 50, and EMA 100 to follow medium-term trends and retracements.
Position Trading:
Use EMA 200 to identify long-term trend direction and key support/resistance levels.
Ideal For:
Traders of all levels—scalpers, day traders, swing traders, and position traders.
Anyone looking for a flexible and customizable EMA indicator to fit their trading needs.
Pro Tip: Combine the Custom EMA (5) with other indicators like RSI, MACD, or volume analysis to refine your entries and exits.
OHLC/4 Daily vs Quarterly CrossOHLC/4 Daily vs Quarterly Cross
The "OHLC/4 Daily vs Quarterly Cross" indicator is a powerful tool designed to provide traders with insights into trend alignment and potential market turning points. By calculating the average of the open, high, low, and close prices (OHLC/4), this script compares the daily average price action with the quarterly average to identify significant crossover events.
This indicator features two distinct lines: the Daily OHLC/4 and the Quarterly OHLC/4, each plotted in different colors for easy differentiation. A crossover occurs when the daily OHLC/4 moves above the quarterly average, potentially signaling bullish momentum or a shift in market direction. Conversely, a crossunder marks the daily OHLC/4 moving below the quarterly level, indicating potential bearish sentiment or a reversal.
With real-time plotting and built-in alert conditions, this script enables traders to stay ahead of critical market movements by setting automated notifications for crossover events. Whether you're seeking to confirm trends or identify new opportunities, the "OHLC/4 Daily vs Quarterly Cross" delivers clarity and actionable insights for more informed decision-making.
BK Multiple MA, RMA, SMA, HMA, VWAP, Rolling VWAP **Indicator Description**
I’m incredibly proud to introduce my third indicator to the TradingView community: **BK Multiple MA with HMA, VWAP, and Rolling VWAP**! This tool has been a game-changer in my trading strategy, and I’m excited to share it with others who are navigating the markets.
This indicator holds a special place in my heart because it represents the first technical analysis concept introduced to me by my mentor when I began apprenticing under him. His wisdom, guidance, and passion for trading—and for life—left an indelible mark on my journey. I dedicate this work, and every indicator I introduce, to the foundation he helped me build, while giving glory first and foremost to God.
**Moving Averages (MAs)** are one of the most widely used tools in technical analysis, and this indicator takes them to the next level. It allows you to plot **six fully customizable moving averages simultaneously**, with options including:
- **Exponential Moving Average (EMA)**
- **Simple Moving Average (SMA)**
- **Relative Moving Average (RMA)**
- **Hull Moving Average (HMA)**
- **Volume Weighted Average Price (VWAP)**
- **Rolling VWAP**
This flexibility makes the indicator highly versatile, whether you’re a day trader, swing trader, or long-term investor. By customizing periods, colors, and line widths for each MA, you can tailor the indicator to perfectly suit your trading style.
**Key Features**
1. **Six Fully Customizable MAs**:
- Adjust periods, line colors, and widths to match your preferences.
- Select from EMA, SMA, RMA, HMA, VWAP, or Rolling VWAP for each line.
2. **Unique Rolling VWAP Option**:
- Rolling VWAP calculates the volume-weighted average price over a user-defined period, such as 200 candles.
- This feature is ideal for traders seeking volume-weighted levels that don’t reset with each session, making it invaluable for trend-following and swing trading.
3. **HMA for Smoother Trends**:
- The Hull Moving Average (HMA) is designed to reduce lag and provide a responsive, noise-free view of price trends.
- It’s a powerful tool for spotting reversals and confirming directional momentum.
4. **Session VWAP**:
- Traditional VWAP resets with each trading session, making it a reliable benchmark for intraday support and resistance levels.
**How It Works**
- **VWAP**: Reflects the average price weighted by volume for the current trading session, commonly used by institutional traders to identify key price levels.
- **Rolling VWAP**: Extends VWAP functionality by calculating over a user-defined period, allowing for flexible multi-timeframe analysis.
- **HMA**: A fast, smooth moving average that reacts quickly to price changes while filtering out noise.
The combination of these options provides traders with a comprehensive view of market dynamics, enabling better decision-making.
**Final Thoughts**
This indicator is deeply meaningful to me because it represents the first concept my mentor introduced when I began apprenticing under him. His wisdom, guidance, and passion for trading—and for life—left an indelible mark on my journey. I dedicate this work, and every indicator I introduce, to the foundation he helped me build, while giving glory first and foremost to God.
If this indicator helps you succeed, I humbly ask that you honor the blessings in your life by giving back—whether through acts of kindness, philanthropy, or helping others in need.
May the Almighty guide us all toward wisdom and success in our endeavors. All glory belongs to God!
Multi-Period VWAP with SMAs and Fibonacci Levels The Multi-Period VWAP with SMAs and Fibonacci Levels indicator—a powerful tool combining Volume-Weighted Average Price (VWAP), Simple Moving Averages (20 SMA and 200 SMA), and Fibonacci retracement levels. This indicator helps traders identify key support/resistance zones, trend direction, and high-probability entry points with precision.
MACD and EMA Background Logic v2Explanation of the Script:
MACD Calculation:
MACD is calculated using ta.macd for the user-defined timeframe (macdTimeframe).
EMA Calculation:
EMA is calculated using ta.ema for the user-defined timeframe (emaTimeframe).
Background Coloring:
Green: When macd > 0 and close > emaValue.
Red: When macd < 0 and close < emaValue.
Black: If only one condition is true.
Buy Sell with MacD, RSI & Volume Filters - By Satish6289
**MACD & RSI with Range and Volume Filter Strategy**
This strategy combines MACD and RSI indicators with additional range and volume filters to improve accuracy in identifying potential market tops and bottoms.
- **Buy Signal**: Triggered when MACD crosses above its signal line, RSI is below the oversold level, the price is below the lower range band, and volume exceeds its moving average.
- **Sell Signal**: Triggered when MACD crosses below its signal line, RSI is above the overbought level, the price is above the upper range band, and volume exceeds its moving average.
The range filter ensures trades are taken only when the price deviates significantly from its smoothed trend, while the volume filter adds confidence by requiring high trading activity.
Previous D, W, M High/LowThis indicator plots previous day's high,low,open and close values and plots previous week's and month's high and low value on the chart.
Saty Phase Oscillator MTF// Saty Phase Oscillator
// Copyright (C) 2022-2024 Saty Mahajan
// A useful range-based signal to monitor various phases of the market.
// modified to MTF by ROK234
The reason for publishing this modification is that a member of r/TradingView (Reddit) explicitly requested such an MTF modification, just now.
RV- ProTime Dynamic Trend AnalyzerRV-ProTime Dynamic Trend Analyzer is a state-of-the-art trading indicator meticulously designed to provide unparalleled insights across all timeframes. It combines essential tools for trend, momentum, and key level analysis, making it a one-stop solution for traders. The core feature, Dynamic Multi-Timeframe Supertrend, sets this indicator apart, complemented by additional tools for comprehensive market analysis. Here’s everything this indicator offers:
Key Features:
1. Dynamic Multi-Timeframe Supertrend (Core Feature)
Daily, Weekly, Monthly, and Yearly Supertrends are plotted directly on the chart, providing precise trend direction across multiple timeframes.
Lower timeframe Supertrends are automatically hidden on higher timeframe charts (e.g., Weekly and Monthly ) to reduce clutter and maintain precision, ensuring a clean and actionable view.
These Supertrends help identify major trend reversals, pullbacks, and continuation zones, empowering traders to make informed decisions regardless of the trading horizon.
Whether you’re scalping on intraday charts or strategizing long-term trades, this feature ensures you always have the right trend perspective at your fingertips.
2. Quarterly and Yearly Earnings Table
A built-in table to display Quarterly and Yearly Earnings, allowing traders to incorporate fundamental analysis into their strategies effortlessly.
Provides quick insights into the financial health and performance of stocks, helping traders align with strong-performing assets.
3. RSI & MACD Multi-Timeframe Table
Visualize RSI and MACD values across multiple timeframes, including 1-minute, 5-minute, 15-minute, 1-hour, Daily, Weekly, and Monthly.
This table helps detect overbought/oversold zones and shifts in momentum, offering a robust foundation for entry and exit strategies.
4. Exponential Moving Averages (EMAs)
Includes four customizable EMAs to support moving average crossovers, trend identification, and dynamic support/resistance levels.
Ideal for traders seeking to refine their entries and exits based on trend-following strategies.
5. Fibonacci Pivots
Features two sets of Fibonacci-based Pivot Points for higher and lower timeframes.
These pivots act as critical support and resistance zones, aiding traders in identifying key price levels for potential reversals or breakouts.
6. Auto 52-Week and All-Time High/Low Levels
Automatically plots 52-week highs/lows and all-time highs/lows, with visually distinct candle coloring for added clarity.
Provides immediate identification of stocks reaching pivotal breakout or reversal zones, making it invaluable for trend-following and breakout strategies.
7. User-Friendly Customization
All features are toggleable, allowing traders to customize the indicator based on their unique trading preferences and strategies.
Why This Indicator Stands Out:
The RV-ProTime Dynamic Trend Analyzer isn’t just another indicator—it’s a comprehensive trend detection and market analysis system. The Daily, Weekly, Monthly Supertrends serve as its backbone, offering unmatched flexibility and adaptability for traders across all timeframes. These Supertrends allow traders to:
Identify and align with the prevailing trend at any level.
Avoid conflicting signals by dynamically hiding lower timeframe trends on higher timeframe charts.
Gain an edge in both short-term and long-term trading strategies by providing a consistent view of market direction.
Whether you’re an intraday scalper, swing trader, or position trader, this indicator adapts to your needs, combining the power of trend-following tools with fundamental and technical insights.
Unlock the ultimate trading experience with the RV-ProTime Dynamic Trend Analyzer: backtest the indicator, take trades with the best risk-reward setups, and trade with a stop-loss aligned with your strategy to achieve consistent success!
EMA 9/20/50/200This script is an indicator that calculates and displays four Exponential Moving Averages (EMAs): EMA 9, EMA 20, EMA 50, and EMA 200. It helps traders identify trends and key price levels by visualizing EMAs across different timeframes.
Fibonacci TsunamiFibonacci Moving Averages (FMAs) are a technical analysis tool used in financial markets to help identify trends and potential reversal points. They combine the concept of moving averages with Fibonacci retracement levels, which are widely used in technical analysis to predict possible support and resistance levels based on the Fibonacci sequence.
Key Concepts:
Moving Averages (MA): A moving average is a mathematical calculation that smooths out past price data to create a trend-following indicator. It helps to identify the direction of the trend and reduce market noise.
Fibonacci Sequence: This is a series of numbers where each number is the sum of the two preceding ones. In technical analysis, Fibonacci retracement levels (like 23.6%, 38.2%, 50%, 61.8%, and 100%) are often used to identify potential support and resistance levels.
How Fibonacci Moving Averages Work:
Fibonacci Moving Averages are calculated by applying Fibonacci ratios to the standard moving average calculation. The most common Fibonacci ratios used in FMAs are 34, 55, 89, 144, and 233. These numbers are significant because they are part of the Fibonacci sequence and are believed to represent key points of support and resistance in financial markets.
For example:
A 34-period Fibonacci moving average would be calculated using the last 34 data points.
A 55-period Fibonacci moving average would be calculated using the last 55 data points.
Other Fibonacci periods, such as 89 and 144, could also be used depending on the trader's preferences.
How Traders Use Fibonacci Moving Averages:
Trend Identification: Traders use FMAs to help identify the direction of the trend. When the price is above a Fibonacci moving average, it suggests that the market is in an uptrend. Conversely, when the price is below the moving average, it may indicate a downtrend.
Support and Resistance Levels: The Fibonacci moving averages themselves can act as dynamic support and resistance levels. For instance, if the price is approaching a Fibonacci moving average from below, it may encounter resistance. If the price is approaching from above, it may find support.
Crossovers: Similar to other moving averages, Fibonacci moving averages are often used in conjunction with one another. A crossover of a shorter-term FMA (e.g., 34-period) above a longer-term FMA (e.g., 233-period) can indicate a bullish signal, while the opposite crossover may signal a bearish trend.
Combining with Other Indicators: Many traders use FMAs in conjunction with other technical analysis tools, like the relative strength index (RSI) or MACD, to confirm signals and enhance decision-making.
Example:
If a trader is using the 34-period and 55-period Fibonacci moving averages, a bullish crossover would occur when the 34-period FMA crosses above the 55-period FMA. This is often considered a buy signal.
If the price is approaching the 89-period Fibonacci moving average after an uptrend, the 89-period level may act as resistance and could be used to set a target price.
