After some chart measures, I noticed that if we took the difference between fast and slow Moving Average lines and apply the Fibonacci ratios, we get a very reliable level for each bar.
So, I made this script to help me (and anyone who wants to use it) know where we should close or put stops in our orders.
█ HOW TO USE IT:
Choose your preferred Moving Average type and Lengths;
Select the Fibonacci Ratios and test Reverse Lines option to get better levels.
Other useful input options:
- Show Labels: Display every Fibonacci Ratio you are using;
- Labels Offset Position: Place where the Fibonacci Ratio will appear and get the price in that position;
- Project Moving Average Lines in the Future: Draws project Line in the chart.
• If you put your mouse in the ratio label, it will show the price in that position
• This script works better when the lines are well apart.
- Fixed a Little Bug that plot NA values as 0.0
- Put the script link inside the code
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.