The author of Fibonacci Retrace (FR) is unknown. Leonardo Fibonacci was an Italian mathematician who dealt with number sequences. The retrace factor in this calculation is derived from the Fibonacci number series. The FR applies highest highs minus lowest lows times the retrace factor, to an exponential moving average to produce an upper and lower band. The user may change the method (EMA), input (close), period lengths and retrace factor. This indicator’s definition is further expressed in the condensed code given in the calculation below. See also Fibonacci Numbers
How To Trade Using Fibonacci Retrace
No trading signals are calculated for this indicator.
How To Access in MotiveWave
Go to the top menu, choose Study>Bands>Fibonacci Retrace
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//input = price, user defined, default is closing price
//method = moving average (ma), user defined, default is WMA
//period1 = user defined, default is 15
//period2 = user defined, default is 50
//retfac = retrace factor, user defined, default is .382
Plot1: ma = ma(method, period1, input); highest = highest(period2, HIGH); lowest = lowest(period2, LOW); retrace = (highest - lowest) * retfac; Plot2: hret = highest - retrace; Plot3: lret = lowest + retrace;