Josmellon2024 wrote: Fri Mar 07, 2025 5:35 am 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.

fantastic!!! thankyou
one question So, is it based on the previous day's high and low? If bearish, price moves from high to low, and if bullish, it moves from low to high, right?
Can you also show the retracement levels, including 50%, 61.8%, and 79%? something like this levels indicated by yellow line

A trader could combine the existing Fibonacci Zones with retracement levels to refine entry points and stop-loss placements, reducing risk and improving accuracy.
For example, entering a long trade near the 61.8% level, with a stop below 79%, provides a high reward-to-risk setup. Also helps in trailing stops