The Fibonacci Trailing Stop indicator creates a Trailing Stop, based on Fibonacci levels which are retrieved from the latest swing high & low. This provides a Trailing Stop-line.

USAGE

The Fibonacci Trailing Stop can indicate the current trend direction.

Shadows can also provide potential support/resistance areas.

Users can also display Fibonacci retracements.

CONCEPTS

Basic principles

There are 2 basic principles:

• Every new swing will create or update a new Fibonacci pattern, potentially changing the Fibonacci Trailing Stop (FTS)

• The Trend depends on whether the FTS is crossed/breached, the trigger is a chosen 'level/trigger'     (settings -> Fibonacci Trailing Stop -> Level/Trigger)

• In an  uptrend, these levels will be placed at the bottom half of the pattern.

• In a downtrend, these levels will be placed at the top half of the pattern.

Once a trend is established, the Trailing Stop will only update in the direction of the trend:

• Only higher when in an uptrend
• Only lower when in a downtrend

If a Trailing Stop line is broken, the trend shifts to the other direction

The FTS line is accompanied by a secondary line (colour-filled), created by smaller swings (half of L/R, rounded to above)

EXAMPLES

• New bullish Trend/pattern • Updating later on

• Bearish Trend -> breached -> New bullish Trend -> Trend is updated later on, and is breached at the end:

• Trend broken -> new Trend/direction:

• Bearish Trend -> breached -> New bullish Trend -> breached -> New bearish Trend (Here you see the latest cross of the bullish trend)

Shadows & latest Fibonacci

The indicator contains the option to show:

• Latest Fibonacci
• Shadows: previous Fibonacci Levels (will only appear after a 1 bar delay)

Shadows can be very useful to provide support/resistance areas, especially from large shadow-blocks.

When shadows are enabled, the color fill of Latest Fibonacci and FTS will be removed, this to provide less clutter:

SETTINGS

Swings

• L: set left of pivothigh/pivotlow
• R: set right of pivothigh/pivotlow
• Swing labels: show labels of swings (updated in the same direction)

Fibonacci Trailing Stop

• Level - Toggle - Custom value

   • Choose pré-set levels [[]-0.5, -0.382, -0.236 , 0, 0.236, 0.382, 0.5, 0.618[]]    • Choose custom level -> Toggle enabled and adjust the number at the right

Trigger: set trigger for breaching the FTS, close or wick (high in downtrend/low in uptrend)

Fibonacci

• Latest Fibonacci: show Latest Fibonacci
• Shadows: show Shadows