Automated Fibonacci Retracements

Traders use Fibonacci retracements and extensions to identify possible support and resistance levels for use as potential stop-loss, take-profit, and entry points. Despite its wide use cases, many traders unintentionally misuse Fibonacci tools by incorrectly selecting the two points used to draw the sequence. This is especially challenging when the market is volatile.

This is where TrendSpider helps the traders by automatically calculating the high and low points for plotting the Fibonacci levels between them. With Automatic Fibonacci enabled, the system will calculate the most meaningful Fibonacci connection points on each timeframe while drawing a retracement.

In this documentation, we will explore:

  • Adding Auto Fibs
  • Using Auto Fibs & Auto Trendlines
  • MTFA & Auto Fibs
  • Right-Click Auto Fibs
  • Manage Customization Settings
  • Truth in Analysis Line

Let’s get started 🚀

Adding Auto Fibs

You can easily add the Automated Fibonacci to the chart by simply clicking on the Auto Fib button from the top toolbar.

click on the Auto Fib button

As a result of this action, TrendSpider will automatically draw the Fibonacci Retracement on the chart without involving any manual efforts.

Automatic Fibonacci Retracement on the chart

When using the automated Fibonacci tool, a manual Fibonacci is initially created and locked in place. To customize, you can change your manual Fibonacci properties and then turn Auto-Fibonacci on. It will then use the same colors and inputs that you customized.

The manual Fibonacci drawing tool inherits the colored center automatically similar to what is seen with our Auto-Fibonacci tool.

Customizing the Fibonacci Retracements has been discussed in the subsequent sections below.

Using Auto Fibs & Auto Trendlines

Auto Fibs and Auto Trendlines can be used correspondingly to amplify the technical analysis.

Drawing Input & Auto Fibs

If the Automated Trends are turned on with the preferences for drawing input set to Body (O/C), the Auto fibs will display a Body to Body connection.

Drawing Input & Auto Fibs

If the Automated Trends are turned on with the preferences for drawing input set to Wick (H/L), the Auto fibs will display a Wick to Wick connection.

Auto fibs displaying a Wick to Wick connection

Analysis Type & Auto Fibs

If the Automated Trends are turned on with the preferences for analysis type set to Original, then the system will navigate and analyze the further distance between the candles and the auto fibs will be measuring a relatively bigger movement.

Analysis Type & Auto Fibs

If the Automated Trends are turned on with the preferences for analysis type set to Enhanced, then the system will navigate and analyze the smaller distance between the candles and the auto fibs will be measuring a relatively smaller movement.

preferences for analysis type set to Enhanced

MTFA & Auto Fibs

With MTFA enabled, you can add Autofibs from the secondary timeframe on the current chart. For example, you can plot the Autofib from a Monthly time frame (secondary) on the current Weekly chart. The Autofib drawn on the current (primary) timeframe will have solid lines whereas the Autofib belonging to the secondary timeframe will have dashed lines on the current chart.

Autofib from a Monthly time frame \(secondary\) on the current Weekly chart.

Right-Click Auto Fibs

Right-click the Auto Fib annotation on the chart to Create Alerts and Manage Auto Fib Properties.

Right-Click Auto Fibs

Create Alerts

Select this option to create simple dynamic alerts and allow TrendSpider to fire notifications whenever the price breaks through, touches, or bounces off of the Auto Fib level. Please note that you can create alerts on a specific Fib level only.

For more information, please refer to the documentation- Create a Dynamic Price Alert

create simple dynamic alerts

After creating the alert on a specific Auto Fib level, you will find it highlighted along with a note illustrating the details of the alert. In the illustration below, you can observe an active simple dynamic alert on Fib Level 0.

note illustrating the details of the alert

Once the alert has been created on the specific Auto Fib level, it will remain unchained and will not shift its location on the chart even if the existing time frame is changed. In the illustration below, you can observe that changing the time frame from Daily (original) to 4 Hours still doesn’t affect the alert originally created at the Fib Level 0 at Daily Timeframe.

Alert created on the specific Auto Fib level remain unchained

Manage Properties

Select this option to customize the Auto Fib annotation for the color, text alignment, trends, prices, levels, and much more.

customize the Auto Fib annotation

Customizing Fibonacci Retracements

Start customizing the Fibonacci Retracements by right-clicking on the Auto Fib annotation and selecting Properties.

Tip: You can also simply double click on any existing Fib level to start customizing your automatically generated Fibonacci Retracement 💡

Color

Use this option to change the color of the Fib levels.

 change the color of the Fib levels

Stroke

Use this option to increase or decrease the thickness of the Fib levels.

Change the thickness of the Fib Levels

Trend, Prices, & Levels

You can check or uncheck the Trend, Prices, and Levels to control their visibility on the Auto Fib annotation.

 check or uncheck the Trend, Prices, and Levels

Tick the Trend option to plot the automated trendline (dotted) alongside Fib levels on the chart.

Trend option plots the automated trendline \(dotted\) alongside Fib levels

Tick the Prices option to plot the prices (appear in closed brackets) of the existing symbol alongside the Fib levels.

Prices option plot the prices \(appear in closed brackets\) alongside the Fib levels.

Tick the Level option to display the Fibonacci retracement levels on the annotation.

Level option display the Fibonacci retracement levels on the annotation

Reverse & Full Mid.

Reverse & Full Mid.

Tick the Reverse option to plot the Reverse Fibonacci on the chart.

Reverse option plots the Reverse Fibonacci on the chart

Tick the Full Mid. option to fill the area between two Fib lines (level 3 and level 5)

Full Mid. option fills the area between two Fib lines

Levels

Check or uncheck the levels you want to plot or remove from the Auto Fib annotation.

Check or uncheck the levels you want to plot or remove

Text Align

You can choose to align the text indicating the levels and price on the Auto Fib annotation to any of the following positions:

  • Top Left
  • Bottom Left
  • Top Right
  • Bottom Right

 choose to align the text indicating the levels and price

Defaults

Click on the Defaults button to reset the properties of the Fib Sequence of defaults.

Defaults button reset the properties of the Fib Sequence

A confirmation dialog window will appear on the interface. Click on the YES to proceed with your action.

A confirmation dialog window

Please note that after performing comprehensive research, we have decided to lock these three options while customizing the Fib Sequence- Ext.Right, Lock Figure, and Visible On

 Ext.Right, Lock Figure, and Visible On

Truth in Analysis Line

With auto fibs turned on, you will observe a vertical dotted line on the chart which is known as the Truth in Analysis Line. It conveys the exact timestamp when analysis on any chart was completed for plotting the auto fibs.

All you have to do is hover your cursor at the bottom part of this line and it will display a dialog box conveying the timestamp when the system looked at the price data for plotting the auto fibs on the chart. In the snippet below, you can observe that it was 2nd April 2022 at 19:25 when the TrendSpider completed the data analysis last time to plot the auto trendlines.

 timestamp when the system looked at the price data for plotting the auto fibs

If the timestamp on the Truth in Analysis Line is not the most recent capture, then you will need to refresh it so that the system can recalculate the data for plotting the auto fibs sequence to the most recent price action. You can force-refresh the analysis by simply moving your cursor to the bottom of the Truth in Analysis line and clicking on the Refresh & Lock. As a result of this action, you will observe the new auto fib sequence based on the latest price reality.

force-refresh the analysis

There are two kinds of Truth in Analysis Lines:

  • Yellow lines: It indicates that the analysis is currently locked at the point in time.
  • Red lines: It indicates that the analysis is not locked and the line is updated each time a user changes their analysis.
Jun 29, 2022

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