Fibs from Current Month

Current Month Fibs

The Fibs from the Current Month display Fibonacci retracements and expansions calculated from the current month high and low. The high and low points can be measured from daily data or from intraday data.

Indicator Description

The numerical values from the Fibs from Current Month can be defined individually. In the event that you’d like to eliminate certain levels, simply set the value for these lines to zero. If you want to add more retracement or expansion levels from the current month Fibs, you may do so by adding several instances of the 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. Leonardo Fibonacci (1170-1250), an Italian mathematician, is credited for introducing the sequence to the West.

The Current Month Fibs 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 current month Fibonacci levels are found by measuring the distance between the day high / low and dividing the vertical distance by the key Fibonacci ratios. The most commonly used Fibs from the Current Month 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).

The indicator is available for NinjaTrader 8.