A Fibonacci Channel Based on Recent Swing Highs and Lows

Summary

This indicator draws a Fibonacci channel using a recent swing high and swing low. The swing depth is controlled by an input, with a default setting described as a preferred parameter. The channel includes internal retracement levels at 0.236, 0.382, 0.5, 0.618, and 0.786.

Another input changes which prior swing high and low define the trendline. The document says price action traders often use these internal levels, but offers no chart examples, test results, or rules for trading them. The chosen swing points depend on indicator settings, and the description does not explain how signals should be interpreted or validated.

Key ideas

• The channel is anchored to swing highs and lows identified by the indicator.
• An input controls swing depth, and another can shift the channel to a previous swing pair.
• The displayed internal levels are 0.236, 0.382, 0.5, 0.618, and 0.786.
• The document gives no performance evidence or explicit trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.