Calculating Daily Fibonacci Pivot Levels from Prior-Day Prices

Summary

This indicator calculates a central pivot from the previous day’s high, low, and close, then derives support and resistance levels using 38.2%, 61.8%, and 100% of that day’s trading range. It displays the resulting levels for the current day, offering reference prices that traders may use to frame intraday support and resistance.

The document provides indicator logic but no historical tests, performance evidence, or rules for entering or exiting trades. Its usefulness therefore lies in the level calculation itself; it does not establish that price will react at these levels. The description also has a labeling inconsistency: the 61.8% resistance output is named “RR2” in the formula, though it is described as R2. Traders would need to verify the implementation and adapt the levels to their market and timeframe.

Key ideas

• The central pivot is the average of the prior day’s high, low, and close.
• Support and resistance levels extend from the pivot by fractions of the prior day’s range.
• The indicator shows levels for the current day using the previous day’s prices.
• The document offers no evidence that these levels predict price reactions or improve trading results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.