OPEN-SOURCE SCRIPT
A Fibonacci Moving Averages Ribbon Using One Plot
The following script aims to visually reproduce a Fibonacci moving averages ribbon by only using one plot function, the period of the moving average is determined by a number of the Fibonacci sequence. This trick is made possible by computing the value of a moving average at time t with a period determined by a periodic Fibonacci sequence and using plot.style_circles as plot style.
Settings
Details
The first thing we must do is to compute a periodic (repeating) linear sequence n from the number in From Fibonacci Number to the number in To Fibonacci Number, then we get the nth Fibonacci number from the previous sequence using Binet's formula.
To get the moving average we first compute the fib period momentum of the cumulative sum of Src, where fib is the current number of our periodic Fibonnacci sequence, we then divide the result by fib.
If we zoom in we can indeed see that there is only one point per bar.
However, zooming out and using a different color for each point allows us to get something visually similar to a ribbon. Adding more plots would create a visually more accurate result.
This trick is not the most useful in the world, but let's imagine you want to plot a massive ribbon consisting of 1000 moving averages with periods that can be determined by a specific sequence, using this trick would allow you to have the effect of 1000 plots while keeping your script relatively efficient, altho ribbons consisting of lots of moving averages are rarely easy to visualize.
Settings
- From Fibonacci Number: Determine the nth Fibonacci number to be used as the lowest moving average period
- To Fibonacci Number: Determine the nth Fibonacci number to be used as the highest moving average period, capped at 19 to avoid errors. If you still have errors lower the value.
- Src : input series of the moving average.
Details
The first thing we must do is to compute a periodic (repeating) linear sequence n from the number in From Fibonacci Number to the number in To Fibonacci Number, then we get the nth Fibonacci number from the previous sequence using Binet's formula.
To get the moving average we first compute the fib period momentum of the cumulative sum of Src, where fib is the current number of our periodic Fibonnacci sequence, we then divide the result by fib.
If we zoom in we can indeed see that there is only one point per bar.
However, zooming out and using a different color for each point allows us to get something visually similar to a ribbon. Adding more plots would create a visually more accurate result.
This trick is not the most useful in the world, but let's imagine you want to plot a massive ribbon consisting of 1000 moving averages with periods that can be determined by a specific sequence, using this trick would allow you to have the effect of 1000 plots while keeping your script relatively efficient, altho ribbons consisting of lots of moving averages are rarely easy to visualize.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Check out the indicators we are making at luxalgo: tradingview.com/u/LuxAlgo/
Disclaimer
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