Fibonacci Pivot Point

The Fibonacci Pivot Point indicator provides a dynamic set of support and resistance levels based on Fibonacci ratios applied to the previous day's closing price. This tool aims to help traders identify potential reversal points or breakout targets throughout the trading session by plotting key horizontal levels directly on the chart.

Usage

The Usage section describes how the script can be used. Traders can use the Fibonacci Pivot Point levels to gauge market sentiment and identify potential entry or exit zones.

• Resistance Levels (R1, R2, R3): These green lines represent potential overhead resistance. A breakout above these levels might signal bullish momentum, while a failure to cross them could indicate a reversal.
• Support Levels (S1, S2, S3): These red lines represent potential floors for price action. A bounce off these levels suggests support, while a breakdown below them could indicate further bearish movement.

By observing how price interacts with these levels, traders can set stop-loss orders or take-profit targets based on the specific Fibonacci tiers.

Details

The indicator calculates levels based on the previous daily close price ($b1$). Unlike traditional pivot points that often use High, Low, and Close averages, this specific implementation calculates percentage-based offsets using key Fibonacci ratios:

• Level 1 (S1/R1): 0.382% offset from the daily close.
• Level 2 (S2/R2): 0.618% offset from the daily close.
• Level 3 (S3/R3): 1.000% offset from the daily close.

The script also includes built-in alert conditions for price crossovers and crossunders for every level, allowing for automated notifications when key thresholds are breached.

Settings

• Line Width: Adjusts the thickness of the horizontal plot lines for better visibility on different chart layouts.

FAQ

How do I interpret the different colors?

Green lines represent Resistance levels (R1, R2, R3), while red lines represent Support levels (S1, S2, S3). Higher levels of resistance and lower levels of support are plotted with increased transparency to help distinguish between the primary and secondary tiers.

Which timeframe should I use this on?

While the levels are calculated using daily data, the indicator is designed to be used on intraday timeframes (like 5m, 15m, or 1h) to identify daily price targets and turning points.

How can I access the Fibonacci Pivot Point?

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