OPEN-SOURCE SCRIPT

Standard Deviation-Based Fibonacci Band by zdmre

This indicator is designed to better understand market dynamics by focusing on standard deviation and the Fibonacci sequence. This indicator includes the following components to assist investors in analyzing price movements:

Weighted Moving Average (WMA): The indicator creates a central band by utilizing the weighted moving average of standard deviation. WMA provides a more current and accurate representation by giving greater weight to recent prices. This central band offers insights into the general trend of the market, helping to identify potential buying and selling opportunities.

Fibonacci Bands: The Fibonacci bands located above and below the central band illustrate potential support and resistance levels for prices. These bands enable investors to pinpoint areas where the price may exhibit indecisiveness. When prices move within these bands, it may be challenging for investors to discern the market's preferred direction.

Indecisiveness Representation: When prices fluctuate between the Fibonacci bands, they may reflect a state of indecisiveness. This condition is critical for identifying potential reversal points and trend changes. Investors can evaluate these periods of indecisiveness to develop suitable buying and selling strategies.

This indicator is designed to assist investors in better analyzing market trends and supporting their decision-making processes. The integration of standard deviation and the Fibonacci sequence offers a new perspective on understanding market movements.

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alertbandBands and ChannelsfibonnacciStandard DeviationStandard Deviation (Volatility)Trend Analysisweightedmovingaverage

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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