AUTO-FIBONACCI Tool • Pine Script Tutorial

Introduction

This tutorial will guide you through the process of creating an AUTO-FIBONACCI tool using Pine Script in TradingView. Designed for traders and coders alike, this tutorial will help you understand the fundamental concepts of Fibonacci retracement levels and how to implement them programmatically.

Step 1: Understanding User Inputs

• Define the user input parameters for your Fibonacci tool.
• Use the input function to allow users to customize settings.
  • Example:

    fibRetraceStart = input(defval=0, title="Retracement Start")
    fibRetraceEnd = input(defval=100, title="Retracement End")
    

Step 2: Detecting Pivots

• Implement logic to identify pivot points in your price data.
• Use the security function to get data from different timeframes.
• Example code snippet to detect pivots:

  pivotHigh = high > high[1] and high > high[-1]
  pivotLow = low < low[1] and low < low[-1]
  

Step 3: Generating Impulsive Move Line

• Create a line to represent the impulsive move based on detected pivots.
• Draw lines between significant pivots using the line.new function.
• Ensure your code dynamically adjusts to new pivots:

  if pivotHigh
      line.new(bar_index[1], high[1], bar_index, high, width=2, color=color.red)
  if pivotLow
      line.new(bar_index[1], low[1], bar_index, low, width=2, color=color.green)
  

Step 4: Drawing Pivots and Fibonacci Ratios

• Implement the drawing of Fibonacci levels based on identified pivots.
• Calculate Fibonacci ratios from the high and low points:
  • Common ratios include 0.236, 0.382, 0.618, and 0.786.
• Example of drawing Fibonacci levels:

  fibLevel1 = fibRetraceStart + (fibRetraceEnd - fibRetraceStart) * 0.236
  fibLevel2 = fibRetraceStart + (fibRetraceEnd - fibRetraceStart) * 0.618
  

Step 5: Finalizing the Code

• Combine all parts of your code into a cohesive Pine Script indicator.
• Ensure to handle errors and provide user feedback for incorrect inputs.
• Test your script on historical data to verify its accuracy and utility.

Conclusion

By following these steps, you have created a functional AUTO-FIBONACCI tool using Pine Script. This tool will not only enhance your trading strategy but also deepen your understanding of coding in TradingView. For further learning, consider exploring advanced Pine Script features or integrating this tool into your trading setup for real-time analysis.