Fibonacci-Scaled Deviation Bands for Trend and Regime Changes

Summary

This indicator tracks price deviations from a central level using thresholds that expand by successive Fibonacci values. The threshold can be set as a manual distance or as a multiple of the 200-period Average True Range. As price moves farther from the center, the required distance grows; once the sequence limit is exceeded, the indicator resets the center to the current close and restarts the multiplier.

The direction of change in the center is used to identify an uptrend or downtrend. The indicator also marks deviations according to their direction and plots upper and lower extremities that may serve as support or resistance references. The published settings include a default sequence length, but no performance evidence or evaluation is provided. The backtest metadata identifies a crypto futures market and a short historical window, yet the document does not report results. These levels are therefore descriptive signals, not demonstrated reversal or entry guarantees.

Key ideas

• Deviation thresholds grow according to successive Fibonacci values.
• The distance can be based on a manual input or a multiple of the 200-period ATR.
• When the sequence limit is exceeded, the central level resets to the current close and the multiplier restarts.
• The direction of the central level's change indicates the labeled trend direction.
• The plotted extremes may be used as support or resistance references, but performance evidence is absent.

Tags

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