Fibs from Current Week

The Fibs from Current Week display Fibonacci retracements and expansions calculated from the current week high and low. The high and low points can be measured from daily data or from intraday data. Other than the below description, you may also review our Indicator Spotlight on the Fibonacci Retracement Levels (with video).

Indicator Description

The numerical values for the Current Week Fibonacci lines can be defined individually. In the event that you’d like to eliminate certain Fibonacci lines, simply set the value for these lines to zero. To add more retracement or expansion levels, you may add several instances of the fibonacci indicator to your chart.

Fibonacci retracements refer to areas of support or resistance levels calculated by using the Fibonacci sequence. A central concept here is what’s called the Golden Ratio, which refers to 1.618 and it’s inverse .618. The Italian mathematician, Leonardo Fibonacci (1170-1250), is credited for bringing the sequence to the West. Using the sequence, Fibonacci noticed that certain ratios could be calculated, and that these correspond to “divine ratios” found throughout nature, architecture and art.

Fibonacci lines are used to identify potential reversal and extension scenarios. Following a strong uptrend, the levels are used to predict the extent of a pullback. The same can be done during a downtrend, i.e. evaluating how far a counter-trend bounce may retrace. The Fibonacci lines from the current week are found by measuring the distance between the week high / low and dividing the vertical distance by the key Fibonacci ratios. The most commonly used retracement levels are 38.2% and 61.8%. Although the 50% retracement is not part of the Fibonacci sequence, it is almost always included as a point of reference (half the range).