Dynamic Fibonacci Zones Indicator

This indicator plots dynamic support/resistance zones using Fibonacci levels derived from the previous day’s price action. Here’s how to trade it:

Key Zones

• Support 1/2 (Blue Zones): Potential buying areas.

• Resistance 1/2 (Orange Zones): Potential selling areas.

Entry Rules

Reversals: Look for price reactions (e.g., pin bars, engulfing candles) at these zones.

• Buy near Support 1/2 with bullish confirmation.

• Sell near Resistance 1/2 with bearish confirmation.

Breakouts: Trade continuation if price closes outside a zone with momentum.

Risk Management

• Place stops beyond the zone boundaries (e.g., below Support 2 for longs, above Resistance 2 for shorts).

• Target the opposite zone (e.g., Support 1 → Resistance 1).

• Zones reset daily. Focus on trades aligning with the current day’s zones.

• Volume, RSI/MACD divergence, or trend lines for confirmation.

Example: Price bounces off Support 1 with a bullish candle → Enter long, stop below Support 2, target Resistance 1.