OPEN-SOURCE SCRIPT
Fib Thermometer - S&P500
Fib Retracement is such an amazing tool 😎 , and when u incorporate it onto a chart, no matter a forex , stock or future one, you will always secure some important and meaningful levels for your trading. I am not a huge fan of it actually 😵, but I would say it is an eye opener for me, because sometimes things don't fully make sense will make you money. I can't deny its popularity in our community and also in the trading world.
In this script, I am not intending to give a brand new version of auto drawing fib levels, but to catch the optimal timings to buy the upcoming rally after a crash 😊. Buying the dips is the approach to get rich , right? But more wisely, we can instead to buy the higher lows , not the lowest lows in order to avoid the bankruptcy risk. Nothing advanced to teach here, doing so just takes your extra patience and willingness to seek confirmation. 🕵
To cut it short, I have utilized 52-week highs and lows and two important fib levels (0.236 and 0.618) , with ten most heavily weighted stocks in s&p500 index to create some awesome signals. The rationale is first defining two fib levels with the 52-week-high-low range, then if those stocks rebounded just higher than 0.236 levels, we can confirm the trend has changed and start our buying. For the 0.618 level, you can use it as a profit taker, or a sell signal during the bull run. What decides a trend continuation or a trend change is the degree of the retracement , and 0.236 would be an ideal level to confirm the trend has changed.😃
For your own convenience, you can amend or diy the script to make it work for you by simply put your favorite stocks or indexes on the list. Hope you find it really helpful and HAPPY TRADING!!! 😃
If you find my scripts useful, please click the FOLLOW button and I am VERY VERY GRATEFUL.😘
In this script, I am not intending to give a brand new version of auto drawing fib levels, but to catch the optimal timings to buy the upcoming rally after a crash 😊. Buying the dips is the approach to get rich , right? But more wisely, we can instead to buy the higher lows , not the lowest lows in order to avoid the bankruptcy risk. Nothing advanced to teach here, doing so just takes your extra patience and willingness to seek confirmation. 🕵
To cut it short, I have utilized 52-week highs and lows and two important fib levels (0.236 and 0.618) , with ten most heavily weighted stocks in s&p500 index to create some awesome signals. The rationale is first defining two fib levels with the 52-week-high-low range, then if those stocks rebounded just higher than 0.236 levels, we can confirm the trend has changed and start our buying. For the 0.618 level, you can use it as a profit taker, or a sell signal during the bull run. What decides a trend continuation or a trend change is the degree of the retracement , and 0.236 would be an ideal level to confirm the trend has changed.😃
For your own convenience, you can amend or diy the script to make it work for you by simply put your favorite stocks or indexes on the list. Hope you find it really helpful and HAPPY TRADING!!! 😃
If you find my scripts useful, please click the FOLLOW button and I am VERY VERY GRATEFUL.😘
Open-source script
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 publication is governed by House rules. You can favorite it to use it on a chart.
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