Fibonacci + RSI Trading Strategy with Fibonacci Extensions (M15)

18 hours ago

This script combines Fibonacci levels and custom RSI thresholds to provide a comprehensive analysis of potential reversal zones under specific market conditions. It is designed to work exclusively on 15-minute (M15) charts, delivering signals based on defined configurations and time-based conditions.

### Key Features:
1. **RSI Indicator with Custom Thresholds**:
- The script uses an RSI (Relative Strength Index) with custom thresholds of 75 for overbought and 20 for oversold.
- It also includes overbought and oversold confirmations over a 30-minute period (i.e., 2 M15 bars), with RSI values of 70 and 30, respectively, to strengthen signal validity.

2. **Fibonacci Levels and Extensions**:
- The script calculates Fibonacci retracement levels (0%, 23.6%, 38.2%, 50%, 61.8%, 78.6%, and 100%) based on the last 50 bars.
- Fibonacci extensions are also plotted at the 1.618 and 2.618 levels, providing additional zones for continuation or potential reversals.

3. **Buy and Sell Signals**:
- A **buy signal** is generated when the RSI is below 20, the RSI remains below 30 for at least 30 minutes, and the price reaches the 61.8% Fibonacci level.
- A **sell signal** is generated when the RSI is above 75, the RSI remains above 70 for at least 30 minutes, and the price reaches the 50% Fibonacci level.
- These conditions enable a targeted approach to capture potential trend reversals.

4. **Display and Plotting**:
- Fibonacci levels are plotted on the chart in different colors to distinguish them, with key levels (50%) in red and entry levels (61.8%) in green.
- Extensions are displayed in yellow to indicate potential continuation levels.
- Buy and sell signals are marked with "BUY" and "SELL" icons above or below bars when the conditions are met.
- The RSI is also shown in a sub-window to track its values relative to thresholds.

### Usage:
This script is designed for scalping or swing trading on M15 charts. Users can adjust RSI thresholds to fine-tune the conditions to suit their trading style. The script offers multi-criteria analysis based on key Fibonacci levels and time-based RSI confirmations to support potential entry and exit points.