Fibonacci retracement tool download for NinjaTrader 8

The Fibs from Prior Month display Fibonacci retracements and expansions calculated from the prior month 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

This Fibonacci retracement tool download is based on the Prior Month range. You may define the Fibonacci retracement and expansion lines individually. To eliminate certain levels, simply set the value for these lines to zero. To add further retracement or expansion levels, further instances of the Fibs from Prior Month indicator can be added to your chart.

Fibonacci levels are used to identify potential reversal and extension scenarios. Following a strong uptrend, you may use this indicator as a Fibonacci retracement tool, predicting the extent of a pullback. You may achieve the same during a downtrends, i.e. evaluating how far a counter-trend bounce may retrace. The Fibonacci levels from the prior month are found by measuring the distance between the month 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).

Leonardo Fibonacci

Fibonacci retracements refer to areas of support or resistance levels calculated by using the Fibonacci sequence. Leonardo Fibonacci (1170-1250), an Italian mathematician, is credited for bringing the sequence to the West. Using the sequence, Fibonacci noticed that certain ratios could be calculated. Throughout nature, architecture and art, he found them corresponding to “divine ratios”. Specifically, Fibonacci mentions the Golden Ratio, referring to 1.618 and it’s inverse .618.