Alleged Fibonacci Retracement Bug in TradingView Unaddressed for Five Years
A Twitter user known as Cryptoteddybear, who identifies as a certified Elliott wave analyst, has raised concerns about a potential flaw in TradingView‘s Fibonacci retracement tool. According to their analysis, the tool incorrectly performs linear calculations on logarithmic charts, which could significantly impact traders who rely on the Elliott wave principle for market forecasting.
Historical Reports and Company’s Stance
Initial reports of this issue surfaced in November 2014 on the getsatisfaction platform, with follow-up reports in June 2017. While TradingView acknowledged the problem in 2017 and stated plans for a fix, the tool’s behavior reportedly remains unchanged. The company’s CTO later disputed these claims, leading to a partial retraction by Cryptoteddybear.
Potential Impact on Trading Strategies
The Elliott wave principle serves as a fundamental technical analysis method for identifying market trends through recurring patterns. An error in the Fibonacci retracement tool’s calculations, particularly on logarithmic scales, could lead to inaccurate analyses and misguided trading decisions.
TradingView’s Recent Platform Updates
During this ongoing discussion, TradingView introduced the ‘CIX100’ index, an AI-driven benchmark for the top 100 cryptocurrencies. In related news, Coin Metrics acquired Bletchley Indexes, signaling plans to develop new crypto index products.
Conclusion
As of now, TradingView has not issued further statements regarding the alleged bug. This situation underscores the importance of precise technical analysis tools in cryptocurrency trading, where accuracy directly affects market outcomes.
