Custom Fibonacci Strategy

Custom Fibonacci Strategy:

This strategy relies on analyzing Fibonacci levels to identify entry points for trades. It works by identifying peaks and troughs over a specified time period (50 bars in this code). Here are the steps of the strategy:

Identifying Peaks and Troughs:

The highest peak and lowest trough over the last 50 bars are identified.
If the price exceeds the previous peak, it is considered a break of the peak.
If the price falls below the previous trough after breaking the peak, it is considered a break of the trough.
Calculating Fibonacci Levels:

The 50% level (midway point) between the identified peak and trough is calculated.
Buy Signals:

When a trough is broken, and the price trades at or below the 50% level, the risk-to-reward ratio is evaluated.
If the risk-to-reward ratio is greater than or equal to 2, a buy signal is generated.
Displaying Levels:

Horizontal lines are displayed on the chart to illustrate the peak, trough, and Fibonacci level.
Summary
This strategy provides a systematic approach to trading based on Fibonacci retracement levels and price action, allowing traders to make informed decisions about entry points and manage risk effectively.