Fibs from Current Day

Fibonacci trading strategy for NT8

The Fibs from Current Day display Fibonacci retracements and expansions calculated from the current day high and low. The high and low points can be measured from daily data or from intraday data. When measured from the daily data, the order of the retracements may be inverted, if highs and lows were made on the same day.

Indicator Description

The numerical values for the Fibs from Current Day can be defined individually. If you’d like to eliminate certain levels for a specific Fibonacci trading strategy, simply set these indicator values for those lines to zero. To add more retracement or expansion levels, you may add several instances of the fibonacci indicator to your chart.

The Daily levels can be used to identify potential reversal and extension setups for a Fibonacci trading strategy. 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 indicator levels from the current day are found by measuring the distance between the day high / low and dividing the vertical distance by the key Fibonacci ratios. The 50% retracement is not part of the Fibonacci sequence, however, it is almost always included as a point of reference (half the range). The most commonly used current day retracements for a Fibonacci trading strategy are 38.2% and 61.8% levels.

Leonardo Fibonacci (1170-1250), a mathematician from Italy, is credited for introducing the concept to the West. Fibonacci noticed that certain ratios could be calculated, arriving at “divine ratios” found throughout art, architecture and nature. This is what’s called the Golden Ratio, corresponding to 1.618 and it’s inverse .618.

Other Library indicators

Our Indicator Library for NinjaTrader 8 has a separate category with Fibonacci indicators, including the Prior Day Fibonacci LevelsCurrent Week Fibonacci Levels / Prior Week Fibonacci Levels, the Current Month Fibonacci Levels / Prior 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.