Fibs from Current Day

Daily Fibonacci Levels

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. In the event that you’d like to eliminate certain Current Day Fibonacci levels, simply set the value for these lines to zero. If you want to add more retracement or expansion levels, you may do so by adding several instances of the indicator to your chart.

Daily Fibonacci levels can be 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 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 Fibonacci retracement levels are 38.2% and 61.8%. Although

Leonardo Fibonacci (1170-1250), a mathematician from Italy, is credited for introducing the concept to the West. Fibonacci had noticed that certain ratios could be calculated, corresponding to “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.

The indicator is available for NinjaTrader 8.