Do Fibonacci Pivot Points Work

[grayson]

Quick question do Fibonacci pivot points work? and is anybody using these?

I have tried to use Fib pivot points and see them as acting like magnets. Strange as it seems, they sort of work. Is anyone else experienced with Fibonacci pivot and how to use them precisely.

[bigmarket]

I don't count on Fib pivots to be exact, but they do work like magnets so they're not completely useless.

[joker]

I don't bank on them like some people do, I actually think they are hit and miss. Some Fib retracements look like coincidental when I try to follow them

[lloyd80]

Fibonacci pivots are calculated and work well sometimes. The key word is sometimes...

Fibonacci pivots are a technical analysis tool used in trading to identify potential support and resistance levels based on the Fibonacci sequence. A Fibonacci pivot point is calculated by taking the average of the high, low, and close prices for a given period and applying the Fibonacci ratios to that value.

Here is a basic formula to calculate Fibonacci pivots:

First, calculate the Pivot Point (PP) as the average of the high, low, and close prices for the previous period: PP = (High + Low + Close) / 3

Next, calculate the first resistance level (R1) as 2 times the PP minus the low of the previous period: R1 = (2 * PP) - Low

Calculate the second resistance level (R2) as the PP plus the difference between the high and low of the previous period: R2 = PP + (High - Low)

Calculate the third resistance level (R3) as the high of the previous period plus 2 times the difference between the PP and the low of the previous period: R3 = High + 2 * (PP - Low)

Calculate the first support level (S1) as 2 times the PP minus the high of the previous period: S1 = (2 * PP) - High

Calculate the second support level (S2) as the PP minus the difference between the high and low of the previous period: S2 = PP - (High - Low)

Calculate the third support level (S3) as the low of the previous period minus 2 times the difference between the high and the PP: S3 = Low - 2 * (High - PP)

Traders use Fibonacci pivots in conjunction with other technical analysis tools to identify potential entry and exit points for trades. It is important to note that technical analysis tools such as Fibonacci pivots are not foolproof and should be used in conjunction with other factors such as market conditions, news events, and other indicators to make informed trading decisions.

I don't know if you can count on them as a sole indicator of anything. I wouldn't recommend using them as a primary trade indicator.