test_fibonacci_example_1

gistfile1.txt

MAGIC_FIB_LEVELS = [0, 0.236, 0.382, 0.5, 0.618, 0.786, 1.00, 1.618, 2.618, 3.618, 4.236]

# https://blog.quantinsti.com/fibonacci-retracement-trading-strategy-python/
def estimate_fib_retracement(
        swing_low: float, 
        swing_low_idx: int, 
        swing_high: float, 
        swing_high_idx: int,
        target_fib_level: float = 0.618 # Magic 618
    ):
        price_range = swing_high - swing_low
        if swing_low_idx < swing_high_idx: # high came first? Or low?
            retracement_price = swing_high - (price_range * target_fib_level)
        else:
            retracement_price = swing_low + (price_range * target_fib_level)
            
        return retracement_price

# Example 1, Big pump from Feb 2024
swing_low = 42590 # 20240201
swing_high = 73082 # 20240314
retracement_level = estimate_fib_retracement(swing_low, 1, swing_high, 2)
# Fibonacci predicted market would have chop to 54237.944 (vs actual was 56.6k on 1 May 2024, so didn't quite chop to 618)
print(f"Fibonacci predicted, after market pumped from {swing_low} to {swing_high}, market will chop to {retracement_level}")