e2e4mfck

[e2] Absolute Retracement

Absolute Retracement is a tool to obtain support and resistance levels.
It is designed for macro-level support and resistance and should be used on daily, weekly or monthly timeframes.


Instructions
1. Define the Reference Point

There are 4 methods to define reference point and start initialization of the script:
 - All Time Low / All Time High : The script is looking for the lowest low / highest high on entire history
 - Manual Low / Manual High : The user should define the reference point manually using the Previous Reference Point option

IMPORTANT NOTE: The correct reference point is:
 - the level at which prices have not exceeded during past 12-18 months
 - the All Time High / Low level

2. Level Calculation
There are 3 methods of level calculation for All Time Low and Manual Low modes (Fibonacci, Tribonacci,Tetranacci Sequence Calculator)
 - Fibonacci  sequence with the initialization numbers: {1, 1.61803 (Fibonacci Constant)}
 - Tribonacci sequence with the initialization numbers: {0, 1, 1.83929 (Tribonacci Constant)}
 - Tetranacci sequence with the initialization numbers: {0, 0, 1, 1.92756 (Tetranacci Constant)} 

The All Time High and Manual High modes use the Fibonacci Retracement logic and calculates 7 levels derived from the Fibonacci Constant (Golden ratio - 1.61803) (Fibonacci slicer)

3. Visualization
 - Different gradient modes (Color Gradient Function)
 - Option to show the Sequence Details (Sequence's name and number, factor)
 - Option to change the Sequence's level color (white, black, gradient) and turn off the label background
 - Move the reference point's label to the latest bar

All Time Low and Manual Low examples:

All Time High examples:

Disclaimer
The DeMark Indicators® are a collection of registered trademarks protected by U.S. trademark law. They all belong to Market Studies, LCC .
This study makes no commercial use of the trademarks. This script is for educational use and the implementation of DeMark Indicators© concepts (such as TD Absolute Retracement) is based on my interpretation from the books “The New Science of Technical Analysis” and “DeMark on Day-Trading Options” by Tom Demark .
Release Notes: Major Update:
- Option to show all 3 sequences simultaneously (All Time Low and Manual Low Modes).
- Option to show only 0.618 and 0.382 Retracements (All Time High and Manual High Modes).
- Updated styling options for reference point selector (Manual Low and Manual High Modes).
- 3 additional gradient options.
- Sequence details hidden in tooltips by default.
Release Notes: .
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Comments

500coins
+2 Reply
This publication will be featured in our "Best Scripts of The Month" selection. Thank you for your valuable contribution to the TradingView community, and congrats!
+5 Reply
e2e4mfck PineCoders
@PineCoders, Much appreciated! Thx.
Reply
Exceptional work, thank you so much for sharing this!
+2 Reply
e2e4mfck allanster
@allanster, Thx, your welcome ;)
Reply
Hi, excellent work e2! I applied it to the weekly of EURUSD and it flattens the price, so it looks like the scaling is not right. Tried resetting the chart, and it does not resolve it. Any ideas? Again, thank you, reviewing your code is helpful to me in learning what can be done in version 4 of pinescript.
+1 Reply
e2e4mfck dgmtrader
@dgmtrader, Hi, thx! This tool is not supposed to be applied on "oscillating" assets like currencies, it was designed for stocks and indices.
Reply
dgmtrader e2e4mfck
@e2e4mfck, makes sense, thanks again!
+2 Reply
can we work together to build a fibonacci time retracment?
+1 Reply
e2e4mfck Time_Oracle
@Time_Oracle, Feel free to dm me with your offer ;)
Reply
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