Does the Auto Fibonacci Retracement Tool Fail in Volatile Regimes?

The automated tool dynamically attaches to the absolute highest swing high and lowest swing low on the active chart timeframe. When price spikes past a swing high by a single pip to grab liquidity before dropping, the tool immediately recalculates and shifts the 61.8 percent Golden Pocket level to a completely new price. Does relying on dynamic Auto Fibonacci tools cause execution confusion during live market conditions?