Fibonacci Levels with SMA Signals

This strategy leverages Fibonacci retracement levels along with the 100-period and 200-period Simple Moving Averages (SMAs) to generate robust entry and exit signals for long-term swing trades, particularly on the daily timeframe. The combination of Fibonacci levels and SMAs provides a powerful way to capitalize on major trend reversals and market retracements, especially in stocks and major crypto assets.

The core of this strategy involves calculating key Fibonacci retracement levels (23.6%, 38.2%, 61.8%, and 78.6%) based on the highest high and lowest low over a 365-day lookback period. These Fibonacci levels act as potential support and resistance zones, indicating areas where price may retrace before continuing its trend. The 100-period SMA and 200-period SMA are used to define the broader market trend, with the strategy favoring uptrend conditions for buying and downtrend conditions for selling.

This indicator highlights high-probability zones for long or short swing setups based on Fibonacci retracements and the broader trend, using the 100 and 200 SMAs.

In addition, this strategy integrates alert conditions to notify the trader when these key conditions are met, providing real-time notifications for optimal entry and exit points. These alerts ensure that the trader does not miss significant trade opportunities.

Key Features:
Fibonacci Retracement Levels: The Fibonacci levels provide natural price zones that traders often watch for potential reversals, making them highly relevant in the context of swing trading.

100 and 200 SMAs: These moving averages help define the overall market trend, ensuring that the strategy operates in line with broader price action.

Buy and Sell Signals: The strategy generates buy signals when the price is above the 200 SMA and retraces to the 61.8% Fibonacci level. Sell signals are triggered when the price is below the 200 SMA and retraces to the 38.2% Fibonacci level.

Alert Conditions: The alert conditions notify traders when the price is at the key Fibonacci levels in the context of an uptrend or downtrend, allowing for efficient monitoring of trade opportunities.

Application:
This strategy is ideal for long-term swing trades in both stocks and major cryptocurrencies (such as BTC and ETH), particularly on the daily timeframe. The daily timeframe allows for capturing broader, more sustained trends, making it suitable for identifying high-quality entries and exits. By using the 100 and 200 SMAs, the strategy filters out noise and focuses on larger, more meaningful trends, which is especially useful for longer-term positions.

This script is optimized for swing traders looking to capitalize on retracements and trends in markets like stocks and crypto. By combining Fibonacci levels with SMAs, the strategy ensures that traders are not only entering at optimal levels but also trading in the direction of the prevailing trend.