What it does
This tool overlays a ZigZag line that filters out moves smaller than a set percentage or ATR deviation, then automatically draws Fibonacci retracement levels on the most recent completed swing. You get live 23.6%, 38.2%, 50%, 61.8% and 78.6% levels without manually anchoring a Fib tool. As a new swing forms, the levels re-anchor to the latest leg.
Typedraws on the price chart
How to add it
Click Indicators (ƒx) in the header.
Search “ZigZag Fib Retracement” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Look for pullback entries at the 38.2%-61.8% zone of the last impulse leg, in the direction of that leg; 61.8% is the classic 'golden' level.
- A retracement holding above 50% keeps the prior trend intact; a deep push through 78.6% warns the swing is likely a full reversal rather than a pullback.
- Combine a Fib level with horizontal support/resistance or a moving average for confluence before entering.
- Use the swing extremes (0% and 100%) for stop placement: a stop just beyond 100% invalidates the pullback idea.
- Confirm the bounce at a level with a reversal candle or an oscillator turn rather than placing blind limit orders.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Deviation % | number | 5 | 0.1–20 |
| Depth | number | 10 | 2–50 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| ZigZag | line | #009688 |
| 23.6% | line | #f7525f |
| 38.2% | line | #ff9800 |
| 50% | line | #4caf50 |
| 61.8% | line | #05B878 |
| 78.6% | line | #9c27b0 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Use Add to favorites in the legend menu; starred studies surface at the top of the picker.
- The legend eye toggles it off without losing your settings — handy for before/after comparisons.
- Its price-scale label can be switched off per-indicator at the bottom of the Style tab if the axis gets crowded.
Watch out for
- The ZigZag repaints: the last leg is provisional until price reverses by the threshold, so the newest Fib levels can shift.
- Fib levels are self-fulfilling at best; without confluence they are just ratios, and in strong trends price can slice through every level.