Mapping Fibonacci Retracement Confluence with a Multi-Scale Heat Field

Summary

Fibonacci Gravity Clusters estimates where retracement levels from confirmed swings accumulate near one another. It maintains separate ZigZag swing histories across six pivot scales, filters small legs by their size relative to ATR, and projects selected Fibonacci ratios from each retained leg onto a shared price grid. Contributions are weighted by swing size and age, optionally adjusted for selected ratios, then smoothed across neighboring bins with a Gaussian kernel. The resulting heat field highlights dense zones; local peaks can also be drawn as labeled levels with raw hit counts.

The indicator is a map of price-structure confluence, not a directional forecast or a standalone entry signal. Its heat is normalized to each chart’s own maximum, so brightness alone cannot compare absolute confluence across instruments or periods; hit counts provide a separate raw measure. Confirmed legs use closed bars, while the optional unfinished-leg projection repaints. The method’s evidence is its construction and illustrative interpretation, not reported trading tests or performance results.

Key ideas

• The indicator combines retracement projections from confirmed swings at multiple pivot scales.
• Swing contributions are weighted by ATR-based size and age, then smoothed across nearby price bins.
• Bright bands and peak lines identify areas where projected levels cluster.
• The heat field is normalized to its own maximum, so brightness is not an absolute strength measure.
• The output maps confluence without predicting direction, and the optional live-leg projection repaints.

Tags

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