Fib Levels | Trend Structure | FVGS
📐 Understanding Fibonacci Analysis
Fibonacci levels are based on the Fibonacci sequence and its mathematical properties. These levels have been observed to act as support and resistance in financial markets, potentially due to the collective behavior of market participants.
🔢 Fibonacci Retracement Levels
Enable/Disable Individual Levels: Show only the levels you use
Color Customization: Set distinct colors for each level
Extension Toggle: Choose whether to display extension levels
Customize how Fibonacci levels appear on your chart:
⚙️ Fibonacci Configuration
🔸 1.272 Extension: First extension target
🔸 1.618 Extension: The "golden ratio" extension, often a strong target
🔸 2.0 Extension: Double the range, significant psychological level
For projecting potential targets beyond the established range:
🎯 Fibonacci Extension Levels
🔸 0.236 Level: Shallowest retracement, often just a pause in a strong trend
🔸 0.382 Level: Common retracement in strong trends
🔸 0.5 Level: Not actually a Fibonacci ratio but widely used by traders
🔸 0.618 Level: The "Golden ratio," considered the most important Fibonacci level
🔸 0.786 Level: Deep retracement often seen before trend continuation
📐 Fibonacci Retracement Calculation
The indicator automatically calculates Fibonacci retracement levels based on the most recent significant swing high and low:
🧪 Practical Applications
📉 Fibonacci Retracement Strategy
Identify a significant price swing (high to low for downtrends, low to high for uptrends)
Wait for price to retrace to a key Fibonacci level (0.382, 0.5, or 0.618)
Look for rejection (price response) at the Fibonacci level
Enter in the direction of the original trend
Place stop loss beyond the next Fibonacci level
📈 Fibonacci Extension Strategy
Identify a completed retracement to a Fibonacci level
Enter or add to position as price resumes the main trend
Set targets at Fibonacci extension levels (1.272, 1.618, or 2.0)
Consider partial profit taking at each extension level
🔗 Combining with Other Elements
Fibonacci levels become more powerful when they align with:
🔸 Order Blocks at the same price
🔸 Market Structure points
🔸 High/Low zone boundaries
🔸 Fair Value Gaps
🧱 Trend Structure
The Price Structure Mapping indicator in the EZ Algo Price Action Suite tracks the overall market structure by connecting significant swing points. It creates a zigzag line that follows the market's trend structure, showing you the bigger picture of price movement and helping you identify the market's directional bias.
By turning off the candles on the chart, it gives a clean Price Action structure layout.
🧭 Visual Elements
Zigzag Line: The indicator draws a connected line that follows the market structure from swing high to swing low (or swing low to swing high)
Line Style Options: Choose between solid lines (⎯⎯⎯⎯) or dashed lines (----)
Custom Color: The default is amber/gold (#C79800), but you can customize this to your preference
⚙️ How It Works
The Price Structure indicator:
Identifies significant swing highs and lows in the market
Connects these points with a zigzag line
Extends the line forward to show the current trend direction
Updates automatically as new structure forms
🛠️ How to Use the Price Structure Mapping
1. Trend Direction
Uptrend: When the zigzag line is making higher highs and higher lows
Downtrend: When the zigzag line is making lower highs and lower lows
Consolidation: When the zigzag line moves sideways with equal highs and lows 2. Trading with Price Structure
Entry Points
Trend-Following: Enter in the direction of the Price Structure line after a pullback
Long when price retraces to the structure line in an uptrend
Short when price retraces to the structure line in a downtrend
Trend Reversal: Watch for changes in the zigzag pattern
When a downtrend structure breaks a previous high, consider long positions
When an uptrend structure breaks a previous low, consider short positions
Using in combination of Market structure indicators, i.e BOS | CHoCH, can give solid information of position taking or profit taking
📉 FVG: Fair Value Gaps
📖 What Are Fair Value Gaps?
Fair Value Gaps (FVGs) are price areas with significant gaps between trading sessions that suggest potential continuation or reversal points. These represent inefficiency in the market where price moved too quickly, creating zones that often get "filled" in future price action.
🔍 Types of Fair Value Gaps
📈 Bullish FVGs
Form when price gaps up, creating a zone below current price
Displayed as blue/purple zones
Often act as support when price returns to them
Indicate strong bullish momentum
📉 Bearish FVGs
Form when price gaps down, creating a zone above current price
Displayed as red zones
Often act as resistance when price returns to them
Indicate strong bearish momentum
⚙️ FVG Varieties and Settings
The indicator offers three different types of gaps:
FVG (Standard): Traditional fair value gaps between candles
VI (Volume Imbalance): Gaps with significant volume imbalance
OG (Open Gap): Gaps occurring at market opens
🛠️ Configuration Options Include:
🔸 Timeframe: View FVGs from current or higher timeframes
🔸 Max Width: Filter out excessively large gaps
🔸 Mitigation Method: Choose how gaps are considered filled
🔸 Fill/Shade Options: Control how filled gaps are displayed
🔸 Mid Line: Add a central line through FVGs
📚 Advanced FVG Concepts
🔁 FVG Confluence Zones
Areas where multiple FVGs overlap create stronger zones
FVGs that align with Order Blocks create high-probability reaction zones
Higher timeframe FVGs are typically more significant
📏 FVG Width Analysis
Wider FVGs may take longer to fill
Narrower FVGs typically fill more quickly
Extremely wide FVGs may never completely fill
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