//@version=2
//Creates bands based on Fibonacci numbers and the SMA.
//Based on indicator by Big Mike on futures.io
//How to trade
//          Best to use in ranging market
//			Place on two different time frames eg. 15 and 55 min. 
//			Take trades off either short or long term chart.
//			Best trades occur when both charts show same trigger/condition.
//			Trades are short term reversals in direction of major trend on longer term chart unless you expect a trend reversal.
//			Determine which band is the limiting band for the volatility of the instrument.
//			When the market closes outside of the limiting band then returns inside, take a long/short one tick above/below
//			the high/low of the previous bar. 
//			Place stop below/above the low/high of the the recent swing low/high.
//			Set targets at opposite band of chart with trailing stop after crossing middle band.
study("Fib Bands", overlay=true)
lenSMA=input(title="#bars back SMA", defval=50, type=integer)
lenATR=input(title="#bars back ATR", defval=14, type=integer)
firstFactor=input(title="factor fib. band 1", defval= 1.618, type=float)
secondFactor=input(title="factor fib. band 2", defval= 2.618, type=float)
thirdFactor=input(title="factor fib. band 3", defval= 4.236, type=float)
vAtr = atr(lenATR)
vSma = sma(close,lenSMA)
fib1u=vSma + vAtr * firstFactor
fib1l=vSma - vAtr * firstFactor
fib2u=vSma + vAtr * secondFactor
fib2l=vSma - vAtr * secondFactor
fib3u=vSma + vAtr * thirdFactor
fib3l=vSma - vAtr * thirdFactor
plot(fib1u, color=white)
plot(fib1l, color=white)
plot(fib2u, color=green)
plot(fib2l, color=red)
plot(fib3u, color=green)
plot(fib3l, color=red)