Using Prior-Period Fibonacci Ratios for Intraday Support and Resistance

Summary

The document describes an intraday Fibonacci indicator that uses the previous candle’s high and low to draw support and resistance levels. The distances are set as Fibonacci proportions of that candle’s range, with the daily candle range serving as the measurement unit when using daily data. The stated purpose is to provide reference levels for intraday price analysis; the document does not specify a trading entry, exit, or position-sizing method.

A timeframe input allows analysis on a selected period above the chart’s current period, so the same approach can be applied beyond daily data where the timeframe relationship permits it. The indicator was first implemented in MQL4 and published in 2007. The description offers no empirical results, parameter comparison, or evidence that price reliably reverses or reacts at the calculated levels. Traders would need to define and test how the levels fit a broader strategy.

Key ideas

• The indicator draws support and resistance levels from the previous candle’s high and low.
• It places levels at Fibonacci-proportioned distances based on the prior candle’s range.
• A timeframe parameter supports analysis on periods above the active chart period.
• The document describes levels for analysis but gives no entry, exit, or risk rules.
• No performance evidence is provided to establish that price responds reliably to the levels.

Tags

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