Detecting ABC Swings and Projecting Fibonacci Extension Targets
Summary
This indicator identifies the latest three-pivot A-B-C swing pattern with a ZigZag process, then projects extensions of the A-to-B impulse from point C. It recognizes bullish patterns as a low, high, and higher low, and bearish patterns as a high, low, and lower high. Pivot confirmation uses a symmetric lookback and a reversal threshold based on either ATR or a fixed percentage.
The chart marks extension levels at 1.0, 1.272, and 1.618, with an optional 0.618 level and a shaded 1.5–1.618 reaction band. It freezes the latest valid structure and can grey or hide it when price closes beyond point A. These projections are presented as potential targets, trailing areas, or places to watch for exhaustion, with possible confluence from other chart levels. The document provides implementation logic and configurable parameters, but no performance evidence; pivot lookback and threshold choices affect which structures appear, and the projected zones are not validated as reliable trading signals.
Key ideas
- The indicator finds alternating swing pivots using a symmetric lookback and an ATR-based or percentage reversal threshold.
- A bullish pattern is a low-high-higher-low sequence, while a bearish pattern is its mirror image.
- It projects Fibonacci multiples of the A-to-B move forward from point C.
- The 1.5–1.618 extension band is highlighted as a possible reaction or target area.
- A close beyond point A can invalidate the frozen structure.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.