The DonchianFibo indicator is a technical analysis tool designed to help traders visualize price volatility and potential reversal levels by combining two popular trading concepts: Donchian Channels and Fibonacci retracements.
Core Functionality
The script automatically scans a specific look-back period (defaulting to 55 candles) to identify the highest and lowest price points reached during that timeframe. By establishing these "ceiling" and "floor" boundaries, it creates a dynamic range of current market movement. Once this range is established, the logic applies Fibonacci proportions to every point between those two extremes.
Key Logic Components
- Dynamic Range Mapping: The indicator identifies the maximum high and minimum low within your chosen period. This gives you an immediate visual of the recent "trading territory."
- Fibonacci Retracement Levels: It automatically calculates six specific Fibonacci levels (0.236, 0.382, 0.5, 0.618, and 0.764) based on that range. These are plotted as horizontal reference lines to help traders identify where the price might pull back or find support/resistance.
- Wick vs. Body Customization: A unique feature of this script is the ability to choose how the highs and lows are calculated:
- Standard Mode: Uses the absolute highest and lowest points (including the "wicks" or thin lines at the top and bottom of candles).
- Body-Only Mode: If enabled, the script ignores the wicks and only calculates levels based on the actual candle bodies (the space between the open and close prices). This is often preferred by traders who believe wicks represent "noise" rather than true price action.
- Real-Time Price Labels: When enabled, the indicator places visual markers at the current price level for every calculated Fibonacci line, allowing for a precise look at how close the current price is to these key zones.
Visual Representation
The tool renders these levels as a series of lines on your chart. It uses a distinct color palette (including Orchid, Orange, and Chartreuse) to differentiate between the various Fibonacci tiers. The primary boundaries (the absolute high and low) are drawn as solid lines, while the internal Fibonacci retracements are represented by dotted lines, providing a clean, organized view of the market structure.
Price Data Components
Miscellaneous
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df-donchianfibo
//+------------------------------------------------------------------+
//| DF-DonchianFibo.mq4 |
//| Copyright 2014, DonForex |
//| http://donforex.com |
//+------------------------------------------------------------------+
#property copyright "Copyright 2014, DonForex"
#property link "http://donforex.com"
#property description "DonForex - DonchianFibo indicator"
#property version "1.01"
#property strict
//---- indicator settings
#property indicator_chart_window
#property indicator_buffers 7
#property indicator_color1 clrOrchid
#property indicator_color2 clrDarkOrange
#property indicator_color3 clrChartreuse
#property indicator_color4 clrSteelBlue
#property indicator_color5 clrChartreuse
#property indicator_color6 clrDarkOrange
#property indicator_color7 clrOrchid
#property indicator_width1 1
#property indicator_width2 1
#property indicator_width3 1
#property indicator_width4 1
#property indicator_width5 1
#property indicator_width6 1
#property indicator_width7 1
//---- indicator parameters
extern string Copyright = "http://donforex.com";
extern int Donchian_Period = 55;
extern bool Ignore_Candle_Wicks = false;
extern bool Show_Prices = true;
extern color Val_1_Color = clrOrchid;
extern color Val_2_Color = clrDarkOrange;
extern color Val_3_Color = clrChartreuse;
extern color Val_4_Color = clrSteelBlue;
extern color Val_5_Color = clrChartreuse;
extern color Val_6_Color = clrDarkOrange;
extern color Val_7_Color = clrOrchid;
//---- indicator buffers
double Val_1[];
double Val_2[];
double Val_3[];
double Val_4[];
double Val_5[];
double Val_6[];
double Val_7[];
double Diff;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- drawing settings
IndicatorBuffers(7);
SetIndexStyle(0,DRAW_LINE,STYLE_SOLID);
SetIndexStyle(1,DRAW_LINE,STYLE_DOT);
SetIndexStyle(2,DRAW_LINE,STYLE_DOT);
SetIndexStyle(3,DRAW_LINE,STYLE_DOT);
SetIndexStyle(4,DRAW_LINE,STYLE_DOT);
SetIndexStyle(5,DRAW_LINE,STYLE_DOT);
SetIndexStyle(6,DRAW_LINE,STYLE_SOLID);
//---- indicator buffers mapping
SetIndexBuffer(0,Val_1);
SetIndexBuffer(1,Val_2);
SetIndexBuffer(2,Val_3);
SetIndexBuffer(3,Val_4);
SetIndexBuffer(4,Val_5);
SetIndexBuffer(5,Val_6);
SetIndexBuffer(6,Val_7);
//---- name for DataWindow and indicator subwindow label
IndicatorShortName("DonFibo");
SetIndexLabel(0,"Val_1");
SetIndexLabel(1,"Val_2");
SetIndexLabel(2,"Val_3");
SetIndexLabel(3,"Val_4");
SetIndexLabel(4,"Val_5");
SetIndexLabel(5,"Val_6");
SetIndexLabel(6,"Val_7");
/* PLEASE, DON'T REMOVE IT!*/
Comment(StringConcatenate("DF-DonchianFibo (",Donchian_Period,") >> http://donforex.com"));
/* PLEASE, DON'T REMOVE IT!*/
if(Show_Prices)
{
ObjectCreate("DFDonFibo_1",OBJ_ARROW,0,Time[0],Close[0]);
ObjectSet("DFDonFibo_1",OBJPROP_ARROWCODE,SYMBOL_RIGHTPRICE);
ObjectSet("DFDonFibo_1",OBJPROP_COLOR,Val_1_Color);
ObjectCreate("DFDonFibo_2",OBJ_ARROW,0,Time[0],Close[0]);
ObjectSet("DFDonFibo_2",OBJPROP_ARROWCODE,SYMBOL_RIGHTPRICE);
ObjectSet("DFDonFibo_2",OBJPROP_COLOR,Val_2_Color);
ObjectCreate("DFDonFibo_3",OBJ_ARROW,0,Time[0],Close[0]);
ObjectSet("DFDonFibo_3",OBJPROP_ARROWCODE,SYMBOL_RIGHTPRICE);
ObjectSet("DFDonFibo_3",OBJPROP_COLOR,Val_3_Color);
ObjectCreate("DFDonFibo_4",OBJ_ARROW,0,Time[0],Close[0]);
ObjectSet("DFDonFibo_4",OBJPROP_ARROWCODE,SYMBOL_RIGHTPRICE);
ObjectSet("DFDonFibo_4",OBJPROP_COLOR,Val_4_Color);
ObjectCreate("DFDonFibo_5",OBJ_ARROW,0,Time[0],Close[0]);
ObjectSet("DFDonFibo_5",OBJPROP_ARROWCODE,SYMBOL_RIGHTPRICE);
ObjectSet("DFDonFibo_5",OBJPROP_COLOR,Val_5_Color);
ObjectCreate("DFDonFibo_6",OBJ_ARROW,0,Time[0],Close[0]);
ObjectSet("DFDonFibo_6",OBJPROP_ARROWCODE,SYMBOL_RIGHTPRICE);
ObjectSet("DFDonFibo_6",OBJPROP_COLOR,Val_6_Color);
ObjectCreate("DFDonFibo_7",OBJ_ARROW,0,Time[0],Close[0]);
ObjectSet("DFDonFibo_7",OBJPROP_ARROWCODE,SYMBOL_RIGHTPRICE);
ObjectSet("DFDonFibo_7",OBJPROP_COLOR,Val_7_Color);
}
//---- initialization done
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
int obj_total=ObjectsTotal();
for(int i=obj_total; i>=0; i--)
{
string Obj_Name=ObjectName(i);
if(StringFind(Obj_Name,"DFDonFibo_",0)>-1) ObjectDelete(Obj_Name);
}
Comment("");
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int limit;
int counted_bars=IndicatorCounted();
//---- check for possible errors
if(counted_bars<0) return(-1);
//---- the last counted bar will be recounted
if(counted_bars>0) counted_bars--;
limit=Bars-counted_bars;
//---- calculate values
if(!Ignore_Candle_Wicks)
{
for(int i=0; i<limit; i++)
{
Val_7[i]=iHigh(Symbol(),Period(),iHighest(Symbol(),Period(),MODE_HIGH,Donchian_Period,i));
Val_1[i]=iLow(Symbol(),Period(),iLowest(Symbol(),Period(),MODE_LOW,Donchian_Period,i));
Diff=Val_7[i]-Val_1[i];
Val_2[i]=Val_1[i]+Diff*0.236;
Val_3[i]=Val_1[i]+Diff*0.382;
Val_4[i]=Val_1[i]+Diff*0.5;
Val_5[i]=Val_1[i]+Diff*0.618;
Val_6[i]=Val_1[i]+Diff*0.764;
}
}
if(Ignore_Candle_Wicks)
{
for(int i=0; i<limit; i++)
{
int HighestBodyIndex=0;
double HighestValue=0;
for(int w=0;w<Donchian_Period;w++)
{
if(i+w<Bars)
{
if(MathMax(Open[w+i],Close[w+i])>HighestValue)
{
HighestValue=MathMax(Open[w+i],Close[w+i]);
HighestBodyIndex=w+i;
}
}
}
Val_7[i]=MathMax(Open[HighestBodyIndex],Close[HighestBodyIndex]);
int LowestBodyIndex=0;
double LowestValue=9999999;
for(int w=0;w<Donchian_Period;w++)
{
if(i+w<Bars)
{
if(MathMin(Open[w+i],Close[w+i])<LowestValue)
{
LowestValue=MathMin(Open[w+i],Close[w+i]);
LowestBodyIndex=w+i;
}
}
}
Val_1[i]=MathMin(Open[LowestBodyIndex],Close[LowestBodyIndex]);
Diff=Val_7[i]-Val_1[i];
Val_2[i]=Val_1[i]+Diff*0.236;
Val_3[i]=Val_1[i]+Diff*0.382;
Val_4[i]=Val_1[i]+Diff*0.5;
Val_5[i]=Val_1[i]+Diff*0.618;
Val_6[i]=Val_1[i]+Diff*0.764;
}
}
if(Show_Prices)
{
ObjectMove(0,"DFDonFibo_1",0,Time[0],Val_1[0]);
ObjectMove(0,"DFDonFibo_2",0,Time[0],Val_2[0]);
ObjectMove(0,"DFDonFibo_3",0,Time[0],Val_3[0]);
ObjectMove(0,"DFDonFibo_4",0,Time[0],Val_4[0]);
ObjectMove(0,"DFDonFibo_5",0,Time[0],Val_5[0]);
ObjectMove(0,"DFDonFibo_6",0,Time[0],Val_6[0]);
ObjectMove(0,"DFDonFibo_7",0,Time[0],Val_7[0]);
}
//---- done
return(0);
}
//+------------------------------------------------------------------+
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