Fibonacci Pivot Points

The Fibonacci Pivot Points tool calculates and displays key support and resistance levels based on Fibonacci ratios and previous period price data to help traders identify potential reversal or breakout zones.

Usage

The Fibonacci Pivot Points indicator is used to identify significant price levels where the market may encounter supply or demand. Traders often use these levels to set profit targets, stop-losses, or to gauge the overall market sentiment.

• Resistance Levels (R1, R2, R3): These levels are plotted above the central pivot point and serve as potential targets for long positions or areas where price might stall.
• Support Levels (S1, S2, S3): These levels are plotted below the central pivot point and act as potential floors where price may bounce.
• Pivot Point (PP): The central axis calculated from the previous period's high, low, and close.

Example usage: If price is trading above the Pivot Point, the sentiment is generally considered bullish, with R1 and R2 serving as the primary upside targets. Conversely, trading below the Pivot Point suggests bearish sentiment toward S1 and S2.

Details

The indicator utilizes the standard pivot point formula as its base: PP = (High + Low + Close) / 3. The support and resistance levels are then derived by multiplying the previous period's range (High - Low) by specific Fibonacci coefficients and adding/subtracting those values from the Pivot Point.

Unlike standard pivot points that use fixed multipliers, this script allows for the customization of the Fibonacci ratios used for each level (defaulting to 0.382, 0.618, and 1.000). The calculations are performed using request.security to ensure the levels are anchored to the user-selected timeframe (Daily, Weekly, or Monthly) regardless of the current chart timeframe.

Settings

• Insert the Time Frame: Determines the historical period (Daily, Weekly, or Monthly) used to calculate the pivot levels.
• Insert Fibonacci R1-R3 Levels: Sets the specific Fibonacci ratios used to calculate the three resistance levels.
• Insert Fibonacci S1-S3 Levels: Sets the specific Fibonacci ratios used to calculate the three support levels.

FAQ

What timeframes does this indicator support? The indicator allows you to choose between Daily (D), Weekly (W), and Monthly (M) anchor periods for calculating the levels.

Can I change the Fibonacci ratios? Yes, all six support and resistance levels have customizable input fields in the settings menu to accommodate different trading strategies.

How can I access Fibonacci Pivot Points? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.