Fibonacci Retracement Engine (DFRE) [PhenLabs]

📊 Fibonacci Retracement Engine (DFRE) [PhenLabs]
Version: PineScript™ v6

📌 Description
Dynamic Fibonacci Retracement Engine (DFRE) is a sophisticated technical analysis tool that automatically detects important swing points and draws precise Fibonacci retracement levels on various timeframes. The intelligent indicator eliminates the subjectivity of manual Fibonacci drawing using intelligent swing detection algorithms combined with multi timeframe confluence analysis.

Built for professional traders who demand accuracy and consistency, DFRE provides real time Fibonacci levels that adapt to modifications in market structure without sacrificing accuracy in changing market conditions. The indicator excels at identifying key support and resistance levels where price action is more likely to react, giving traders a potent edge in entry and exit timing.

🚀 Points of Innovation

• Intelligent Swing Detection Algorithm: Advanced pivot detection with customizable confirmation bars and minimum swing percentage thresholds
  
• Multi-Timeframe Confluence Engine: Simultaneous analysis across three timeframes to identify high-probability zones
  
• Dynamic Level Management: Automatically updates and manages multiple Fibonacci sets while maintaining chart clarity
  
• Adaptive Visualization System: Smart labeling that shows only the most relevant levels based on user preferences
  
• Real-Time Confluence Detection: Identifies zones where multiple Fibonacci levels from different timeframes converge
  
• Automated Alert System: Comprehensive notifications for level breakouts and confluence zone formations
  

🔧 Core Components

• Swing Point Detection Engine: Uses pivot high/low calculations with strength confirmation to identify significant market turns
  
• Fibonacci Calculator: Automatically computes standard retracement levels (0.236, 0.382, 0.5, 0.618, 0.786, 0.886) plus extensions (1.272, 1.618)
  
• Multi-Timeframe Security Function: Safely retrieves Fibonacci data from higher timeframes without repainting
  
• Confluence Analysis Module: Mathematically identifies zones where multiple levels cluster within specified thresholds
  
• Dynamic Drawing Management: Efficiently handles line and label creation, updates, and deletion to maintain performance
  

🔥 Key Features

• Customizable Swing Detection: Adjust swing length (3-50 bars) and strength confirmation (1-10 bars) to match your trading style
  
• Selective Level Display: Choose which Fibonacci levels to show, from core levels to full extensions
  
• Multi-Timeframe Analysis: Analyze up to 3 different timeframes simultaneously for confluence identification
  
• Intelligent Labeling System: Options to show main levels only or all levels, with latest-set-only functionality
  
• Visual Customization: Adjustable line width, colors, and extension options for optimal chart clarity
  
• Performance Optimization: Limit maximum Fibonacci sets (1-5) to maintain smooth chart performance
  
• Comprehensive Alerting: Get notified on level breakouts and confluence zone formations
  

🎨 Visualization

• Dynamic Fibonacci Lines: Color-coded lines (green for uptrends, red for downtrends) with customizable width and extension
  
• Smart Level Labels: Precise level identification with both ratio and price values displayed
  
• Confluence Zone Highlighting: Visual emphasis on areas where multiple timeframe levels converge
  
• Clean Chart Management: Automatic cleanup of old drawing objects to prevent chart clutter
  
• Responsive Design: All visual elements adapt to different chart sizes and timeframes
  

📖 Usage Guidelines
Swing Detection Settings

Swing Detection Length - Default: 25 | Range: 3-50 | Controls the lookback period for identifying pivot points. Lower values detect more frequent swings but may include noise, while higher values focus on major market turns.

Swing Strength (Confirmation Bars) - Default: 2 | Range: 1-10 | Number of bars required to confirm a swing point. Higher values reduce false signals but increase lag.

Minimum Swing % Change - Default: 1.0% | Range: 0.1-10.0% | Minimum percentage change required to register a valid swing. Filters out insignificant price movements.

Fibonacci Level Settings

• Individual Level Toggles: Enable/disable specific Fibonacci levels (0.236, 0.382, 0.5, 0.618, 0.786, 0.886)
  
• Extensions: Show projection levels (1.272, 1.618) for target identification
  

Multi-Timeframe Settings

• Timeframe Selection: Choose three higher timeframes for confluence analysis
  
• Confluence Threshold: Percentage tolerance for level clustering (0.5-5.0%)
  

✅ Best Use Cases

• Swing Trading: Identify optimal entry and exit points at key retracement levels
  
• Confluence Trading: Focus on high-probability zones where multiple timeframe levels align
  
• Support/Resistance Trading: Use dynamic levels that adapt to changing market structure
  
• Breakout Trading: Monitor level breaks for momentum continuation signals
  
• Target Setting: Utilize extension levels for profit target placement
  

⚠️ Limitations

• Lagging Nature: Requires confirmed swing points, which means levels appear after significant moves
  
• Market Condition Dependency: Works best in trending markets; less effective in extremely choppy conditions
  
• Multiple Signal Complexity: Multiple timeframe analysis may produce conflicting signals requiring experience to interpret
  
• Performance Considerations: Multiple Fibonacci sets and MTF analysis may impact indicator loading time on slower devices
  

💡 What Makes This Unique

• Automated Precision: Eliminates manual drawing errors and subjective level placement
  
• Multi-Timeframe Intelligence: Combines analysis from multiple timeframes for superior confluence detection
  
• Adaptive Management: Automatically updates and manages multiple Fibonacci sets as market structure evolves
  
• Professional-Grade Alerts: Comprehensive notification system for all significant level interactions
  

🔬 How It Works
Step 1 - Swing Point Identification: Scans price action using pivot high/low calculations with specified lookback periods, applies confirmation logic to eliminate false signals, and calculates swing strength based on surrounding price action for quality assessment.

Step 2 - Fibonacci Level Calculation: Automatically computes retracement and extension levels between confirmed swing points, creates dynamic level sets that update as new swing points are identified, and maintains multiple active Fibonacci sets for comprehensive market analysis.

Step 3 - Multi-Timeframe Confluence: Retrieves Fibonacci data from higher timeframes using secure request functions, analyzes level clustering across different timeframes within specified thresholds, and identifies high-probability zones where multiple levels converge.

💡 Note: This indicator works best when combined with other technical analysis tools and proper risk management. The multi-timeframe confluence feature provides the highest probability setups, but always confirm signals with additional analysis before entering trades.