Fibar Scalping draws its design from the Fibonacci retracement levels: 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
Delving into its function, Fibar Scalping assists you in determining whether a reverse will continue its direction or not following each reversal candle. Because Fibar Scalping uses a Reversal candle as the main factor for analysis and signal generation, it is developed exclusively based on the KingRenko$ bar.
When a reversal bar forms, it indicates a temporary reversal. But how can we reliably determine if the price will continue in the same direction as the reversal bar?
Fibar Scalping is the answer. This ingenious indicator will generate a Fibar signal if 3 main criteria are satisfied (please refer to the illustration below):
- A Reversal bar appears
- A Retracement occurs right after the reversal bar, meeting the required percentage or a specified tick set in the Min. Retracement parameter.
- After that, the price returns to the direction of the mentioned reversal bar.
Empowering you further, the choice is yours: Choose your desired retracement percentage (compared to the length of the Reversal bar right next to it) or Tick count (calculated from the Close Price of the Reversal bar to the High/Low price of the subsequent bar)
In summary, Fibar Scalping ingeniously uses the potential of Reversal bars and customizable parameters, empowering scalpers to execute strategic decisions. If you seek a scalping indicator that generates dependable short-term reversal signals, this tool belongs in your arsenal.
Dedicated NinjaScript signals:
- Signal_Trade: 1 = bullish, -1 = bearish, 0 = no signal
- 20 Aug 2023 – The indicator was released (build new).