Fibs from Current N Months

The Fibs from the current N Months will display Fibonacci retracements and expansions calculated from the current N months high and low. The high and low points can be measured from daily data or from intraday data.

Indicator Description

The numerical values for the the current N Months Fibonacci levels 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, you may do so by adding several instances of the indicator to your chart. The current N Months Fib levels can be used to create current bi-monthly, quarterly, bi-annual and yearly Fib levels.

Leonardo Fibonacci (1170-1250), is credited for bringing the sequence to the West This is what’s called the Golden Ratio, referring to 1.618 and it’s inverse .618. Using the sequence, Fibonacci noticed that certain ratios could be calculated, and that these correspond to “divine ratios” found throughout nature, architecture and art.

The Fibs from the current N Months refer to areas of support or resistance levels calculated by using the Fibonacci sequence. For example, these levels can be used to identify potential current year Fibonacci retracement 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. A yearly Fibonacci level can be found by measuring the distance between the day high / low N month period, dividing by the vertical distance by the key Fibonacci ratios. The most commonly used Fib 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).

The indicator is available for NinjaTrader 8.