Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur
Fibonacci retracements is a popular instrument used by technical analysts to determine support and resistance areas. In technical analysis, this tool is created by taking two extreme points (usually a peak and a minimum) on the chart and dividing the vertical distance by the key Fibonacci coefficients equal to 23.6%, 38.2%, 50%, 61.8%, and 100%.
Once these levels are defined, horizontal lines are then drawn and used to determine possible support and resistance levels.
Yummy Profit builds this alert based on the "Auto Fibonacci Retracement" (Auto Fib) indicator.
To visualize how the fibonacci retracement indicator works. First, you open tradingview.com website, then open Indicators on your chart and find Auto Fib Retracement in the Built-ins tab.
If you are a regular user of the fibonacci retracement indicator then don't miss this indicator on yummy profit app.
So how to install and configure the fibonacci indicator?
The configuration of fibonacci indicator, we are all built based on tradingview, including parameters:
- Depth: Depth affects the minimum number of bars that will be taken into account when building.
- Reverse: Reverse is the reverse order of lines.
Alert when the price crosses above/below the levels of the fibonacci line: 0; 0.236; 0.328; 0.5; 0.618; 0.786; 1; 1.618; 2.618; 3.618; 4.236.