Fibonacci Pivot Points
Technical IndicatorsA variation of standard pivot points that uses Fibonacci ratios (38.2%, 61.8%, 100%) to calculate support and resistance levels. They combine the predictive power of Fibonacci retracements with the simplicity of pivot point calculations.
What Are Fibonacci Pivot Points?
Fibonacci pivot points start with the same central pivot as standard pivots: (High + Low + Close) / 3. The difference is in how support and resistance levels are calculated. Instead of the standard formula, Fibonacci pivots multiply the previous day's range (High - Low) by key Fibonacci ratios: R1 = Pivot + (0.382 x Range), R2 = Pivot + (0.618 x Range), R3 = Pivot + (1.000 x Range), and mirror calculations for S1-S3.
Why Use Fibonacci Pivots
Fibonacci ratios appear throughout financial markets because so many traders use them. When a support level is generated by both a Fibonacci retracement from a swing move AND a Fibonacci pivot point, the confluence creates a stronger reaction zone. This is the main advantage: Fibonacci pivots align naturally with Fibonacci retracements, providing layered support and resistance. On EUR/USD, the R1 and S1 levels (38.2% of range) capture the most frequent intraday reactions.
Combining Fibonacci Pivots
Use Fibonacci pivots alongside standard or Camarilla Pivot Points to identify zones where multiple pivot calculations overlap. When a Fibonacci S2 aligns closely with a standard S1 or a Camarilla S3, that price zone has exceptional confluence. These overlapping zones produce the most reliable bounces and are worth watching on any pair. Confirm entries with Stochastic Oscillator or RSI (Relative Strength Index) readings at these levels.
Related Terms
Pivot Points
A set of horizontal support and resistance levels calculated from the previous period's high, low, and close. The central pivot, along with S1-S3 support and R1-R3 resistance levels, helps traders identify potential turning points and target prices.
Camarilla Pivot Points
A variation of standard pivot points that generates eight levels (four support and four resistance) clustered more closely around the current price. Designed for intraday trading, they emphasize range-based mean reversion strategies.