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Updated Fibonacci Optimal Entry Zone
Fibonacci Optimal Entry Zone - Professional Market Structure Trading Tool
Overview
This indicator combines market structure analysis with dynamic Fibonacci retracement levels to identify optimal entry zones in trending markets. Unlike standard Fibonacci tools, this indicator automatically detects swing points, tracks market structure changes (CHoCH - Change of Character), and adapts Fibonacci levels in real-time as new market structure develops.
Key Innovation - Why This Combination Works
This tool merges two powerful concepts:
Smart Money Concepts (SMC) market structure detection
Automated Fibonacci retracement analysis
The synergy creates a systematic approach to finding high-probability reversal zones by waiting for structure breaks before drawing Fibonacci levels, ensuring you're always trading with the trend rather than against it.
How It Works
1. Market Structure Detection
Uses pivot high/low analysis to identify significant swing points
Detects "Change of Character" (CHoCH) when price breaks previous structure
Distinguishes between bullish (Higher Highs/Higher Lows) and bearish (Lower Highs/Lower Lows) market conditions
2. Dynamic Fibonacci Deployment
Automatically draws Fibonacci retracements between the most recent significant swings
Updates levels in real-time as new structure forms
Includes extended levels (-2.0 to 1.618) for both retracement and extension analysis
3. Optimal Entry Zone Identification
Highlights the "Golden Zone" (0.5-0.618 for bullish, 0.382-0.5 for bearish)
Provides visual fills between key levels to identify confluence zones
Shows exact price levels at each Fibonacci ratio
Trading Methodology
For Bullish Setups:
Wait for a bullish CHoCH (break above previous high)
Monitor price retracement to Fibonacci levels
Look for entries in the 0.5-0.618 zone (Golden Zone)
Use 0.786 as final support before trend invalidation
For Bearish Setups:
Wait for a bearish CHoCH (break below previous low)
Monitor price retracement to Fibonacci levels
Look for entries in the 0.382-0.5 zone
Use 0.236 as final resistance before trend invalidation
Unique Features
Swing Tracker Mode: Continuously updates Fibonacci levels with each new swing
Structure Period Optimization: Adjustable lookback period (default 10) to capture different market conditions
Visual Clarity: Customizable colors, line styles, and label positions
Fill Zones: Create visual zones between any two Fibonacci levels
Extended Levels: Includes negative Fibonacci levels for advanced harmonic patterns
Real-time Updates: Levels extend to current bar for immediate analysis
Best Practices
Timeframe Selection: Works best on H1 and above for swing trading, M15-H1 for intraday
Confluence: Combine with support/resistance, moving averages, or volume analysis
Risk Management: Use the 0.786 level (bullish) or 0.236 level (bearish) for stop-loss placement
Trend Confirmation: Only take trades in the direction of the CHoCH signal
Settings Guide
Structure Period: Higher values (15-20) for major swings, lower values (5-10) for minor swings
Swing Tracker: Enable for active markets, disable for cleaner historical analysis
Fibonacci Levels: Customize which levels to display based on your trading style
Golden Zone Fill: Highlights the optimal entry area for visual clarity
This indicator is designed for traders who understand market structure and want an automated, systematic approach to Fibonacci-based entries. It removes the subjectivity of manual Fibonacci placement while ensuring you're always aligned with the current market structure.
Chart Requirements:
Use a clean chart with only this indicator
Show at least one complete CHoCH signal with Fibonacci levels
Demonstrate how the levels update with new swings
Highlight the golden zone if enabled
Overview
This indicator combines market structure analysis with dynamic Fibonacci retracement levels to identify optimal entry zones in trending markets. Unlike standard Fibonacci tools, this indicator automatically detects swing points, tracks market structure changes (CHoCH - Change of Character), and adapts Fibonacci levels in real-time as new market structure develops.
Key Innovation - Why This Combination Works
This tool merges two powerful concepts:
Smart Money Concepts (SMC) market structure detection
Automated Fibonacci retracement analysis
The synergy creates a systematic approach to finding high-probability reversal zones by waiting for structure breaks before drawing Fibonacci levels, ensuring you're always trading with the trend rather than against it.
How It Works
1. Market Structure Detection
Uses pivot high/low analysis to identify significant swing points
Detects "Change of Character" (CHoCH) when price breaks previous structure
Distinguishes between bullish (Higher Highs/Higher Lows) and bearish (Lower Highs/Lower Lows) market conditions
2. Dynamic Fibonacci Deployment
Automatically draws Fibonacci retracements between the most recent significant swings
Updates levels in real-time as new structure forms
Includes extended levels (-2.0 to 1.618) for both retracement and extension analysis
3. Optimal Entry Zone Identification
Highlights the "Golden Zone" (0.5-0.618 for bullish, 0.382-0.5 for bearish)
Provides visual fills between key levels to identify confluence zones
Shows exact price levels at each Fibonacci ratio
Trading Methodology
For Bullish Setups:
Wait for a bullish CHoCH (break above previous high)
Monitor price retracement to Fibonacci levels
Look for entries in the 0.5-0.618 zone (Golden Zone)
Use 0.786 as final support before trend invalidation
For Bearish Setups:
Wait for a bearish CHoCH (break below previous low)
Monitor price retracement to Fibonacci levels
Look for entries in the 0.382-0.5 zone
Use 0.236 as final resistance before trend invalidation
Unique Features
Swing Tracker Mode: Continuously updates Fibonacci levels with each new swing
Structure Period Optimization: Adjustable lookback period (default 10) to capture different market conditions
Visual Clarity: Customizable colors, line styles, and label positions
Fill Zones: Create visual zones between any two Fibonacci levels
Extended Levels: Includes negative Fibonacci levels for advanced harmonic patterns
Real-time Updates: Levels extend to current bar for immediate analysis
Best Practices
Timeframe Selection: Works best on H1 and above for swing trading, M15-H1 for intraday
Confluence: Combine with support/resistance, moving averages, or volume analysis
Risk Management: Use the 0.786 level (bullish) or 0.236 level (bearish) for stop-loss placement
Trend Confirmation: Only take trades in the direction of the CHoCH signal
Settings Guide
Structure Period: Higher values (15-20) for major swings, lower values (5-10) for minor swings
Swing Tracker: Enable for active markets, disable for cleaner historical analysis
Fibonacci Levels: Customize which levels to display based on your trading style
Golden Zone Fill: Highlights the optimal entry area for visual clarity
This indicator is designed for traders who understand market structure and want an automated, systematic approach to Fibonacci-based entries. It removes the subjectivity of manual Fibonacci placement while ensuring you're always aligned with the current market structure.
Chart Requirements:
Use a clean chart with only this indicator
Show at least one complete CHoCH signal with Fibonacci levels
Demonstrate how the levels update with new swings
Highlight the golden zone if enabled
Release Notes
Fibonacci Optimal Entry Zone with MTF Trend Confirmation - Trading SystemOverview
This advanced indicator combines market structure analysis, dynamic Fibonacci retracement levels, and multi-timeframe trend confirmation to create a complete trading system. It automatically detects swing points, tracks market structure changes (CHoCH), adapts Fibonacci levels in real-time, and provides a weighted trend score across multiple timeframes - giving you both precise entry levels AND directional bias in one tool.
Key Innovation - The Complete Trading Solution
This tool uniquely merges three powerful concepts:
Smart Money Concepts (SMC) market structure detection
Automated Fibonacci retracement analysis
Multi-Timeframe Trend Scoring with customizable indicators
The synergy creates a systematic approach where:
Fibonacci levels tell you WHERE to enter
MTF trend score tells you WHICH DIRECTION to trade
Market structure confirms WHEN the setup is valid
Core Components
1. Market Structure Detection
Uses pivot high/low analysis to identify significant swing points
Detects "Change of Character" (CHoCH) when price breaks previous structure
Distinguishes between bullish (HH/HL) and bearish (LH/LL) market conditions
2. Dynamic Fibonacci Deployment
Automatically draws Fibonacci retracements between the most recent significant swings
Updates levels in real-time as new structure forms
Includes extended levels (-2.0 to 1.618) for both retracement and extension analysis
Highlights the "Golden Zone" for optimal entries
3. Multi-Timeframe Trend Confirmation (NEW)
Comprehensive Analysis: Evaluates trend across Daily, Weekly, and 65-minute timeframes
Four Key Indicators:
Supertrend (trend direction)
SMA20 & SMA8 (momentum confirmation)
RSI (momentum quality, avoiding overbought/oversold)
Two Scoring Modes:
Strict Mode: All conditions must align (high confidence)
Weighted Mode: Partial scores for developing trends (early signals)
Visual Dashboard: Horizontal display showing trend direction and strength percentage
Trading Methodology
Step 1: Check MTF Trend Score
BULLISH (>65%): Look for long entries at Fibonacci support levels
BEARISH (<35%): Look for short entries at Fibonacci resistance levels
NEUTRAL (35-65%): Exercise caution, reduce position size or stay flat
Step 2: Wait for Structure Break
Bullish: Wait for CHoCH above previous high
Bearish: Wait for CHoCH below previous low
Step 3: Enter at Optimal Fibonacci Levels
Bullish Entries: 0.5-0.618 zone (Golden Zone)
Bearish Entries: 0.382-0.5 zone
Stop Loss: Beyond 0.786 (bullish) or 0.236 (bearish)
Targets: Next Fibonacci levels or structure points
Unique Features
Structure & Fibonacci
Swing Tracker Mode: Continuously updates Fibonacci levels
Customizable Structure Period: Adapt to different market conditions
Visual Fill Zones: Highlight areas between Fibonacci levels
Extended Levels: For harmonic patterns and extensions
Real-time Updates: Levels extend to current bar
MTF Trend System
Flexible Positioning: Place dashboard anywhere on chart
Weighted Scoring: Customize importance of each indicator
Threshold Control: Define your own bullish/bearish levels
Clean Display: Shows only essential information (trend + score)
Settings Guide
Structure Settings
Structure Period: 10 (default) - Higher for major swings, lower for scalping
BoS Width/Style: Visual preferences for structure breaks
Fibonacci Settings
Level Selection: Enable/disable individual levels
Golden Zone Fill: Highlight optimal entry area
Extend Options: Control line extensions
MTF Trend Settings
Scoring Mode:
Strict: High conviction trades only
Weighted: See developing opportunities
Timeframe Weights: Adjust importance (default: D=40%, W=40%, 65M=20%)
Test Weights (Weighted mode): Customize indicator importance
Thresholds: Define bullish (>65%) and bearish (<35%) zones
Trade Management:
Enter only when MTF trend aligns with structure break direction
Use partial profits at each Fibonacci level
Trail stops using structure points
Why This Combination Works
Traditional Fibonacci tools require manual placement and lack trend context. This indicator solves both problems by:
Automating Fibonacci placement based on market structure
Providing multi-timeframe trend context for directional bias
Combining multiple confirmation methods into one clean score
The result is a complete trading system that reduces subjectivity, prevents counter-trend trades, and identifies high-probability reversal zones with precise entry levels.
Chart Requirements
Clean chart with minimal additional indicators
Show at least one complete market cycle with CHoCH
Display the MTF trend dashboard
Highlight entry zones with active Fibonacci levels
This professional-grade tool is designed for traders who understand market structure and want a systematic, multi-timeframe approach to Fibonacci trading with built-in trend confirmation.
Release Notes
Released a fix for lower time frames.Release Notes
* Added 4H view for the MTF feature* Added Watermark
Enjoy!
Release Notes
** Published Bug Fixes **Release Notes
** Minor Changes **Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.