VENTEBITDJ Fibonacci Extension Levels for Last X Candles indicator is designed to display Fibonacci extension levels based on the highest high and lowest low prices over a specified lookback period.

Here's an overview of how the indicator functions:

Input Parameter:

Users can define the lookback period (lookbackPeriod) to determine the range of candles over which the highest high and lowest low prices are calculated.

High and Low Calculation:

The indicator calculates the highest high (highLookback) and lowest low (lowLookback) prices over the specified lookback period.

Fibonacci Extension Levels:

It computes Fibonacci extension levels based on the high and low prices:

1.618 Fibonacci Level (fibLevel1618): This level is calculated as 161.8% of the distance between the high and low prices.

2.618 Fibonacci Level (fibLevel2618): This level is calculated as 261.8% of the distance between the high and low prices.

3.618 Fibonacci Level (fibLevel3618): This level is calculated as 361.8% of the distance between the high and low prices.

4.618 Fibonacci Level (fibLevel4618): This level is calculated as 461.8% of the distance between the high and low prices.

Plotting:

Horizontal lines are plotted on the chart to represent the following:

The highest high (highLookback) over the lookback period (colored green).

The lowest low (lowLookback) over the lookback period (colored red).

Fibonacci extension levels:

1.618 Fibonacci Level (colored blue).

2.618 Fibonacci Level (colored purple).

3.618 Fibonacci Level (colored orange).

4.618 Fibonacci Level (colored teal).

Labels:

Labels are displayed next to each plotted line to indicate their significance:

"HIGH" label for the highest high.

"LOW" label for the lowest low.

Labels indicating the respective Fibonacci extension levels.

Dynamic Updates:

The lines representing the high, low, and Fibonacci levels, along with their associated labels, are dynamically updated with each new bar.

This ensures that the indicator reflects the most recent price data, maintaining its accuracy and relevance.

Conclusion

The VENTEBITDJ Fib Extension Levels for Last X Candles indicator is a powerful tool for traders seeking to understand potential price extensions beyond recent ranges. By leveraging the highest high and lowest low over a customizable lookback period, this indicator plots critical Fibonacci levels, aiding in the identification of potential support and resistance areas. Its dynamic updates and clear visual markers make it an invaluable addition to any trader's toolkit, helping to make more informed and strategic trading decisions.