Fibs from Prior Month

Fibonacci retracement tool

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.

Indicator Description

This Fibonacci retracement tool is based on the Prior Month range. The Fibonacci retracement and expansion lines can be defined 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. The same can be done during a downtrend, 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. 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.

Other Library indicators

Our Indicator Library for NinjaTrader 8 has a separate category with Fibonacci indicators, including the Current Day Fibonacci Levels / Prior Day Fibonacci LevelsCurrent Week Fibonacci Levels / Prior Week Fibonacci Levels, the Current Month Fibonacci Levels and the Current N Month Fibonacci Levels / Prior N Month Fibonacci Levels. Our Indicator Spotlight also discussed Fibonacci Retracement Levels specifically. Additionally, this category also contains the Fibonacci Bands indicator.

Additional support resistance indicators can be found in our session tools category, including the Standard Daily Pivots / Camarilla Pivots Daily / Rolling Daily Pivots, Standard Weekly Pivots / Camarilla Pivots Weekly / Rolling Weekly Pivots, Standard Monthly Pivots / Camarilla Monthly Pivots / Rolling Pivots Monthly and the Standard N-Monthly Pivots / Camarilla N-Monthly Pivots.

Our Indicator Spotlight furthermore discussed the Daily Pivot Levels.

The indicator is available for NinjaTrader 8.