Fibonacci pivot
Family VI · Charts & indicators
Not to be confused with fibonacci, fibonacci retracement, pivot point.
Fibonacci pivot levels are a chart overlay that combines the classic pivot point formula with Fibonacci retracement ratios. The central pivot is the average of the prior period's high, low and close; the surrounding levels are placed at fixed fractions of the prior range above and below it. Traders use them to mark potential intraday or swing turning points.
Calculation
Given the previous period's high (H), low (L) and close (C), the central pivot (PP) is (H + L + C) / 3. The Fibonacci levels are then:
- R1 = PP + 0.382 × (H − L)
- R2 = PP + 0.618 × (H − L)
- R3 = PP + 1.000 × (H − L)
- S1 = PP − 0.382 × (H − L)
- S2 = PP − 0.618 × (H − L)
- S3 = PP − 1.000 × (H − L)
Some charting packages also plot 23.6% and 50% levels, and the exact set of ratios varies by platform.
Worked example
Suppose the prior session had a high of 1.2500, a low of 1.2400 and a close of 1.2460.
The is-key row shows S2, the level often watched as the next support if price breaks below S1.
Use and limitations
Fibonacci pivots are drawn on the chart and recalculated each period. They are not predictive by themselves; they simply mark prices where reactions have sometimes occurred. Because the ratios and the period used (daily, weekly, monthly) are chosen by the trader, the resulting levels differ between users and platforms. No single level is universally respected.
Often confused with
- fibonacci
- The fibonacci sequence is a number series (0, 1, 1, 2, 3, 5, 8, …) and the golden ratio derived from it; a fibonacci pivot is a specific chart overlay built from that ratio and prior price data. The visible sign is that the sequence appears as a list of numbers, while the pivot appears as horizontal lines on a price chart.
- fibonacci retracement
- A fibonacci retracement is drawn between two chosen swing points (a high and a low) and divides that specific move into ratios; a fibonacci pivot is anchored to the previous period's high, low and close and recalculates every period. The visible sign is that retracement levels move with the selected swing, while pivot levels reset at each new period.
- pivot point
- A pivot point is the central level (H + L + C) / 3 with support and resistance placed at simple multiples of the prior range; a fibonacci pivot uses Fibonacci ratios (0.382, 0.618, 1.000) instead of those multiples. The visible sign is the spacing of the levels: classic pivots are evenly spaced, Fibonacci pivots are not.
See also
- forex technical analysis indicators
- price action
- fundamental analysis
- support and resistance
- technical analysis
- fibonacci