What is Auto Fib Channel?
Auto Fib Channel finds the last three alternating swings, two on one side and the one between them on the other, and draws a sloped channel through them. The baseline runs through the two same-side swings, and a parallel line runs through the middle one. Rays at Fibonacci ratios divide the channel, and ratios above 1 project it beyond.
The channel is green when its baseline slopes up and red when it slopes down. Every anchor is a confirmed swing, so a channel appears a few bars after its newest swing and then never moves. When the next alternating swing arrives, a new channel is drawn rather than the old one being tilted.
This is a closed-source premium script. It runs on Altrady's servers, so only its output reaches your chart and its code is not published.
How to use Auto Fib Channel
- The baseline. The ratio 0 line through the two same-side swings is the shape price has been moving in. Pullbacks towards it in a rising channel are where traders watch for support.
- The parallel through the middle swing. Ratio 1 marks the opposite edge. Price pushing beyond it is the channel working, not failing, and the projection ratios above 1 show how far that can extend.
- The inner ratios. The rays between 0 and 1 divide the channel into Fibonacci fractions, which traders use as intermediate levels inside the move.
- A close through the baseline. The channel ends when price closes beyond its baseline, the side away from the middle swing. Price has left the shape it was moving in.
Settings
Swings
| Setting | Default | Range | What it changes |
|---|---|---|---|
| Timeframe | Chart | Chart, 15m, 30m, 1h, 4h, 1D | Read the channel from a higher timeframe while trading a lower one. The chart's own period must divide it exactly. |
| Swing Length | 5 | 1 or more | Bars either side of a pivot. It is also the lag: each anchor is a confirmed swing, so a channel appears this many bars after its newest anchor happened, and then never moves. |
| Significance (ATR x) | 1.5 | 0 to 10 | A swing is ignored unless the leg into it covered this much ATR. Raising it gives fewer, wider channels; lowering it gives many narrow ones. |
Levels
| Setting | Default | Range | What it changes |
|---|---|---|---|
| Levels | 0, 0.382, 0.5, 0.618, 1, 1.618 | The ratios of the channel's width, comma separated. 0 is the baseline through the two same-side anchors and 1 is the parallel through the middle one; above 1 projects beyond the channel. Anything unparseable is skipped; the first 16 are used. | |
| Max Channels | 2 | 1 to 10 | How many channels stay on the chart. Each new alternating swing forms a new one rather than moving an old one, so this is what keeps the chart readable. A channel that is erased gives its slot back. |
| Keep Invalidated | Off | By default a channel is removed once price closes beyond its baseline. Turn this on to leave it in place. It then keeps its slot too, since it is still drawn. |
Display
| Setting | Default | Range | What it changes |
|---|---|---|---|
| Show Levels | On | The parallel rays. | |
| Show Ratios | On | The ratio printed at the right-hand end of each ray. | |
| Extend Right | On | Run the rays to the right edge. With this off they stop at the newest anchor, which shows the channel's history but not where it is going. | |
| Line Style | Solid | Solid, Dashed, Dotted | |
| Label Size | Small | Tiny, Small, Normal, Large, Huge | |
| Show State Pane | Off | A sub-pane counting live channels, giving the newest one's slope, and pulsing on each formation and each break. The tool's internal state, and what the automated checks read. |
Colours
| Setting | Default | Range | What it changes |
|---|---|---|---|
| Rising | #089981 | A channel whose baseline slopes up: the two same-side anchors are rising. | |
| Falling | #f23645 | A channel whose baseline slopes down. |
Alerts: channel_formed, channel_broken.
How it works
The script tracks confirmed swing highs and lows, ignoring small swings whose leg did not cover enough of the market's average true range. Each time a new alternating swing completes a set of three, it forms a channel on those three points.
The channel's width is measured vertically in price, between the middle swing and the baseline at that swing's bar, so it stays the same whatever the zoom or price scale. The ratio rays are drawn parallel to the baseline at fractions of that width.
Because the baseline slopes, the break test moves with it. A channel is broken when a bar closes beyond the baseline at that bar, and it is then removed unless Keep Invalidated is on. Max Channels sets how many recent channels stay on the chart, two by default.
Limitations
- Confirmation lag. Every anchor is a confirmed swing, so a channel appears Swing Length bars after its newest anchor. The trade-off is that it never moves once drawn.
- Many channels in choppy markets. Each new alternating swing forms a new channel. In a choppy market they can come and go quickly; raising Significance gives fewer, wider channels.
- Only the baseline breaks it. A close beyond the far edge or a projection does not end a channel. If you expect the channel to cap price, the script will not tell you when that view failed.
- Not every swing set is a meaningful channel. Three swings always define a channel. Whether price respects it is something to judge on the chart.
- Higher timeframes need a matching chart. When reading from a higher timeframe, the chart's own period must divide that timeframe exactly.
Get Auto Fib Channel
Premium scripts are a one-time purchase in the Altrady marketplace and need a paid Altrady plan to run.
- Auto Fib Channel $7 This script on its own.
- Fibonacci & Gann bundle $25 5 premium scripts, Auto Fib Channel included.
- Altrady Complete Suite $109 All 36 premium scripts.
Frequently asked questions
It uses the last three alternating confirmed swings, either two lows and the high between them or two highs and the low between them. It is not tied to a structure break.
No. The anchors are confirmed swings, so a channel is only drawn once they are settled and then never moves. A new swing creates a new channel instead of changing an existing one. The cost is a delay of Swing Length bars.
A bar closing beyond the baseline, the ratio 0 line through the two same-side swings. Keep Invalidated leaves broken channels on the chart if you want to see their history.
Two. channel_formed fires when a new channel is drawn, and its message says whether it is rising or falling. channel_broken fires when price closes through the baseline.
Yes. Auto Fib Channel is a closed-source premium script. It runs on Altrady's servers, so only its output reaches your chart and the code is never shared. You buy it once in the Altrady marketplace, on its own, in the Fibonacci & Gann bundle or in the Altrady Complete Suite, and it needs a paid Altrady plan to run. It is also included with your first annual Premium subscription.
Use the Get it in Altrady button on this page to open its listing in the Altrady marketplace. Once it is in your account, open the indicator picker on any chart in Altrady Charts and add Auto Fib Channel like any other indicator. Its settings are in the indicator's settings panel.