The Mystery of the Fibonacci Moving Average Band for BNF Strategy

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Today, let us delve into the magical world of Fibonacci and explore the "magic numbers" that control the pulse of the financial market - the Fibonacci Moving Average Indicator. This is not only an indicator, it is more like a key that can unlock the secrets of market trends and lead traders through the complex maze of finance.

The Fibonacci sequence, this mathematical miracle is famous for its mysterious natural laws and golden ratio. It is widely applied in art, architecture, nature, and our protagonist today - financial market analysis. In the trading world, each number in the Fibonacci sequence, such as 5, 8, 13, 21, 34, 55, etc., is given a special significance. They are considered to be the "magic numbers" that reveal the rhythm of the market.

When these "magic numbers" are applied to the moving average period, they seem to be endowed with life, synchronizing with the market's breath, revealing the deep structure of market trends. The short-term moving averages, such as the 5-day or 8-day moving averages, agilely capture the immediate dynamics of the market, while the medium and long-term moving averages, such as the 13-day, 21-day, 34-day or 55-day moving averages, steadily depict the long-term trend of the market.

In this complex trading world, the Fibonacci moving average is not only a light, but also a force. They allow traders to find direction in volatile markets, identify turning points, and guide the direction forward like a compass. When the short-term moving averages intertwine with the medium and long-term moving averages, each intersection could be a signal, telling us about changes in market trends.

The true charm of the Fibonacci moving average band lies not only in its predictive ability. Its essence is that it combines the beauty of mathematics with the practicality of market analysis, providing traders with a powerful tool to optimize trading strategies. It's not a simple number game, but a wisdom that sees into the deeper structure of the market.

Next, we will delve into the core technical indicators of the Fibonacci moving average band - WHALES, RESOLINE, STICKLINE functions, and TRENDLINE, as well as their clever applications. The WHALES indicator, with its 12-period exponential moving average, captures short-term market trends; the RESOLINE indicator, through the 120-period EMA, reveals mid-term market movements; the STICKLINE function, distinguishes the relationship between WHALES and RESOLINE with colors, providing clear visual aids; while TRENDLINE, combining price slope with EMA, depicts more detailed market changes for traders.

The integrated application of these indicators has built a multi-dimensional market analysis framework for traders. They help traders examine the market from different angles, judge the market status more accurately, and make wiser decisions in the ever-changing market environment. The Fibonacci moving average band indicator is like a lighthouse, emitting guiding light in the ocean of trader's navigation.

To make all this more vivid, we invite you to imagine: in this world full of numbers and lines, each Fibonacci moving average is a stream of energy-filled light, they jump, converge, and weave the market story on the chart. Every intersection, every crossing, is a verse in the language of the market, waiting for us to interpret.

So, what exactly makes the Fibonacci moving averages so fascinating? Is it the beauty of the mathematics behind it, or its practicality in market analysis? Perhaps, its charm lies in the perfect combination of these two. In the world of trading, the Fibonacci moving averages indicator is not just a tool, it's more like an adventure, an exploration, an eternal journey about numbers, trends, and market rhythms. Let's talk about the TradingView code of this indicator:

xsl(src, len) function: This function calculates a value called the linear regression slope. Len defines the length of the linear regression. Then, this function normalizes the difference between the current value of the linear regression and the previous value. The formula is (lrc - lrprev) / timeframe.multiplier.

whales, resoline, and trendline are Exponential Moving Averages (EMA) calculated in different ways. "whales" is the 13-period closing price EMA, "resoline" is the 144-period closing price EMA, and "trendline" is a more complicated EMA. It is the 50-period EMA calculated by the 21-period closing price slope multiplied by 23 plus the closing price.

The plotcandle function draws two sets of candlestick charts. One set shows in blue when "whales" is greater than "resoline", and the other set shows in green when "whales" is less than "resoline".

The plot function draws three lines: "whales", "resoline", and "trendline". "whales" is displayed in orange with a line thickness of 2. "resoline" is displayed in yellow with a line thickness of 1. "trendline" is displayed in red with a line thickness of 3.

The last line draws a conditional line. When the closing price is less than the "trendline", the green "trendline" is drawn, otherwise, it is not drawn. This is a logical judgment, the drawing operation is only executed when the condition is met.

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