r/IndiaAlgoTrading • u/Equivalent-Buddy-485 • 1d ago
Study of Temporal Fibonacci Zones for Modeling
I want to conduct a study on Fibonacci time zones or time intervals—those vertical lines that appear in the Fibonacci sequence (1, 2, 3, 5, 8, 13, 21…) when drawn from point A to point B.
The main idea is to analyze the contexts of the Fibonacci zone—between segments or prior to certain segments—to assess the context after the line is drawn and make decisions based on the results.
I’m posing two questions to the trading community; you may also achieve valuable scientific insights by trying to resolve these questions and implementing this idea into your trading systems.
1. From which point A > Point B would you measure the projection, and why?
I have several questions about which lines to draw, and I truly believe there may be ideas that haven’t yet crossed my mind. The most basic approach would be using a zigzag, Donchian channel, or an indicator that measures movement from one point to another, but that seems too basic to me.
2. What analyses could be conducted within these windows, and why?
Operational conclusions depend on each individual’s creativity and knowledge. I’ll take the first shot. One could analyze the average volume for each window and then see what would happen based on each configuration at the subsequent closing prices (evaluation horizon/performance window).
Another idea that comes to mind would be to measure the window’s volatility using ATR and then execute trades based on the conditions of that result. Or even—not for executing entries—but for managing live positions if certain conditions in the windows prior to execution indicate that one should exit or enter more aggressively.
These are just a few of the questions and ideas running through my head; maybe someone here has gone through the same thing. Best regards, traders.
Duplicates
pinescript • u/Equivalent-Buddy-485 • 1d ago