Fibonacci Pivot Points

Seven levels for the day, spaced by Fibonacci ratios.

What it measures

The pivot is the average of the previous day’s high, low and close, as for the floor pivots. The levels above and below it sit at 38.2%, 61.8% and 100% of the previous day’s range, so they are evenly spread around the pivot rather than set by where the close fell.

How traders read it

Traders watch the levels as places where price may pause or turn during the day, and many treat the 61.8% levels as the important ones. It is meant for intraday timeframes.

Formula

pivot = (high + low + close) / 3, of the previous day
R1 = pivot + 0.382 × (high − low)   S1 = pivot − 0.382 × (high − low)
R2 = pivot + 0.618 × (high − low)   S2 = pivot − 0.618 × (high − low)
R3 = pivot + (high − low)           S3 = pivot − (high − low)

Days are UTC and follow Daily Pivot Points: on a Sunday the levels come from Friday’s bar, and on a Monday from Friday’s and Sunday’s high and low together with Sunday’s close. The levels change when the UTC day changes.

Settings and output

Call: fibonacciPivot()

No settings.

What you get: a list of 7, in this order: 1. a number (“R3”); 2. a number (“R2”); 3. a number (“R1”); 4. a number (“fibonacciPivot”); 5. a number (“S1”); 6. a number (“S2”); 7. a number (“S3”).

Warm-up: with no settings, it asks for 3 bars of history and a run-up of 1, and its first value came on bar 24 of the example data.

Chart

Fibonacci Pivot Points drawn by their own code on example prices

The prices are made up, hourly, and the same on every page, so the chart shows how the indicator behaves, not how a market behaved.

In an algorithm

function onIntervalClose() {
  const levels = fibonacciPivot();
  if (levels !== null && CLOSE > levels[1] && OPEN_POSITIONS_COUNT === 0) {
    openPosition("BUY", { quantity: 10000, stopLossPips: 30 });
  }
}