Pivot Fibonacci Trading

The Pivot Fibonacci Trading indicator combines traditional Pivot Point analysis with Fibonacci retracement levels to provide a detailed roadmap for price action. By integrating these two methodologies, the tool identifies high-probability support and resistance zones where price is likely to react, offerring traders more decision-making points between major pivot levels.

Usage

The tool is designed to help traders navigate the market by treating pivots as a primary roadmap and Fibonacci levels as intermediate "stations." It provides visual cues for potential trend exhaustion or reversals.

Recommended timeframes for optimal use include:

• Intraday (H1 and lower): Use the Weekly Pivot setting.
• Medium-term (H4): Use the Monthly Pivot setting.
• Long-term (Daily): Use the Yearly Pivot setting.

The indicator also features a daily range tracker. It displays the current day's range in pips (High - Low) and compares it against the Average Daily Range (ADR) as a percentage. This is particularly useful for day traders to gauge if the market has reached its typical daily volatility limits.

Details

The script calculates standard floor pivots (P, R1, S1) and then derives Fibonacci ratios (0.382, 0.618, 0.786) based on the distance between these levels. Users can also enable second-level pivots (R2, S2) for extended ranges. The "Modified" mode changes the calculation basis to use a 100% range expansion (High - Low) from the pivot point rather than standard floor pivot calculations.

Settings

• Show daily range%: Toggles the visibility of the pip range and ADR percentage label.
• Show Pivot?: Enables or disables the primary Pivot Point lines.
• Pivot timeframe: Determines the higher timeframe used to calculate the pivot levels (e.g., Weekly, Monthly, Yearly).
• Show Fib levels?: Toggles the display of Fibonacci retracement lines between the pivots.
• Show 2nd levels?: Enables the calculation and display of R2 and S2 levels.
• Show mod levels instead?: Switches the logic to a modified calculation based on the prior period's total range.

FAQ

How do I use the Pivot Fibonacci Trading indicator?

You can use it to identify entry or exit points by observing how price reacts to the Fibonacci levels between main pivots. It serves as a visual guide for market structure.

What does the range text represent?

The text shows the current price range in pips versus the 20-day Average Daily Range (ADR). A high percentage suggests the pair might be overextended for the day.

How can I access this tool?

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