The Fibonacci Confluence Toolkit is a technical analysis tool designed to help traders identify potential price reversal zones by combining key market signals and patterns. It highlights areas of interest where significant price action or reactions are anticipated, automatically applies Fibonacci retracement levels to outline potential pullback zones, and detects engulfing candle patterns.

Its unique strength lies in its reliance solely on price patterns, eliminating the need for user-defined inputs, ensuring a robust and objective analysis of market dynamics.

USAGE

The script begins by detecting CHoCH (Change of Character) points—key indicators of shifts in market direction. This script integrates the principles of pure price action as applied in Pure-Price-Action-Structures, where further details on the detection process can be found.

The detected CHoCH points serve as the foundation for defining an Area of Interest (AOI), a zone where significant price action or reactions are anticipated.

As new swing highs or lows emerge within the AOI, the tool automatically applies Fibonacci retracement levels to outline potential retracement zones. This setup enables traders to identify areas where price pullbacks may occur, offering actionable insights into potential entries or reversals.

Additionally, the toolkit highlights engulfing candle patterns within these zones, further refining entry points and enhancing confluence for better-informed trading decisions based on real-time trend dynamics and price behavior.

SETTINGS

Market Patterns

• Bullish Structures: Enable or disable all bullish components of the indicator.
• Bearish Structures: Enable or disable all bearish components of the indicator.
• Highlight Area of Interest: Toggle the option to highlight the Areas of Interest (enabled or disabled).
• CHoCH Line: Choose the line style for the CHoCH (Solid, Dashed, or Dotted).
• Width: Adjust the width of the CHoCH line.

Retracement Levels

• Choose which Fibonacci retracement levels to display (e.g., 0, 0.236, 0.382, etc.).

Swing Levels & Engulfing Patterns

• Swing Levels: Select how swing levels are marked (symbols like ◉, △▽, or H/L).
• Engulfing Candle Patterns: Choose which engulfing candle patterns to detect (All, Structure-Based, or Disabled).

RELATED SCRIPTS

• Pure-Price-Action-Structures.