Fib_Pivots_02
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This tool is designed to automatically calculate and display key price levels on your trading chart using a combination of Pivot Points and Fibonacci retracement principles. It simplifies the identification of potential support and resistance zones, helping traders visualize where the market might pause, reverse, or accelerate based on historical data.
Core Logic and Functionality
The script operates by analyzing price action from the previous trading session to project specific price targets for the current day. Here is a breakdown of how it processes this information:
1. Data Collection The tool constantly monitors the high and low prices reached during a trading period. It specifically looks for the highest point (peak) and the lowest point (trough) achieved before a new trading day begins. These two values form the foundation for all subsequent calculations.
2. Pivot Point Calculation At the start of every new day, the script calculates a central "Pivot" price. This is derived by taking the average of the previous period's high, low, and closing prices. This Pivot point acts as the "equilibrium" or balance line for the current session.
3. Fibonacci Range Projection Beyond the central Pivot, the tool calculates six additional levels (three "Support" levels and three "Resistance" levels). To determine these, it measures the total range of the previous period (the distance between the high and the low) and applies specific Fibonacci ratios:
- S1 & R1: Based on a 38.2% ratio.
- S2 & R2: Based on a 61.8% ratio.
- S3 & R3: Based on a 99% ratio.
4. Visual Representation The script automatically plots these levels as horizontal lines on your chart. To make the data easy to interpret at a glance, it uses a color-coded system:
- White: The main Pivot Point.
- Lime/Yellow: The primary and secondary support/resistance levels (S1, R1, S2, R2).
- Red: The extreme boundary levels (S3, R3), which represent the furthest reaches of the projected range.
How it assists the trader
Instead of manually calculating complex math every time a new day starts, this script does the heavy lifting instantly. It provides a roadmap of where institutional "zones" might exist. By observing how price reacts when it nears these lines, traders can better anticipate potential turning points in the market's momentum.
//+------------------------------------------------------------------+
//| Pivot_Fibs.mq4 |
//| Copyright © 2006, Archer Trading, LLC |
//| http://www.archertrading.net/ |
//+------------------------------------------------------------------+
#property copyright "Archer Trading, LLC"
#property link "http://www.archertrading.net/"
#property indicator_chart_window
#property indicator_buffers 7
#property indicator_color1 White
#property indicator_color2 Lime
#property indicator_color3 Lime
#property indicator_color4 Yellow
#property indicator_color5 Yellow
#property indicator_color6 Red
#property indicator_color7 Red
double PBuffer[];
double S1Buffer[];
double R1Buffer[];
double S2Buffer[];
double R2Buffer[];
double S3Buffer[];
double R3Buffer[];
double S0Buffer[];
double R0Buffer[];
string Pivot="Pivot Point",FibS1="S 1", FibR1="R 1";
string FibS2="S 2", FibR2="R 2", FibS3="S 3", FibR3="R 3";
int fontsize=10;
double P,R,S1,R1,S2,R2,S3,R3;
double LastHigh,LastLow,x;
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
ObjectDelete("Pivot");
ObjectDelete("FibS1");
ObjectDelete("FibR1");
ObjectDelete("FibS2");
ObjectDelete("FibR1");
ObjectDelete("FibS3");
ObjectDelete("FibR2");
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
SetIndexStyle(0,DRAW_LINE,0,2,White);
SetIndexStyle(1,DRAW_LINE,0,2,Lime);
SetIndexStyle(2,DRAW_LINE,0,2,Lime);
SetIndexStyle(3,DRAW_LINE,0,2,Yellow);
SetIndexStyle(4,DRAW_LINE,0,2,Yellow);
SetIndexStyle(5,DRAW_LINE,0,2,Red);
SetIndexStyle(6,DRAW_LINE,0,2,Red);
SetIndexBuffer(0,PBuffer);
SetIndexBuffer(1,S1Buffer);
SetIndexBuffer(2,R1Buffer);
SetIndexBuffer(3,S2Buffer);
SetIndexBuffer(4,R2Buffer);
SetIndexBuffer(5,S3Buffer);
SetIndexBuffer(6,R3Buffer);
//---- name for DataWindow and indicator subwindow label
short_name="Fibonacci Pivot Points";
IndicatorShortName(short_name);
SetIndexLabel(0,short_name);
//----
SetIndexDrawBegin(0,1);
//----
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int counted_bars=IndicatorCounted();
int limit, i;
//---- indicator calculation
if (counted_bars==0)
{
x=Period();
if (x>240) return(-1);
ObjectCreate("Pivot", OBJ_TEXT, 0, 0,0);
ObjectSetText("Pivot", "Pivot",fontsize,"Arial",White);
ObjectCreate("FibS1", OBJ_TEXT, 0, 0, 0);
ObjectSetText("FibS1", "Fib S1",fontsize,"Arial",Lime);
ObjectCreate("FibR1", OBJ_TEXT, 0, 0, 0);
ObjectSetText("FibR1", "Fib R1",fontsize,"Arial",Lime);
ObjectCreate("FibS2", OBJ_TEXT, 0, 0, 0);
ObjectSetText("FibS2", "Fib S2",fontsize,"Arial",Yellow);
ObjectCreate("FibR2", OBJ_TEXT, 0, 0, 0);
ObjectSetText("FibR2", "Fib R2",fontsize,"Arial",Yellow);
ObjectCreate("FibS3", OBJ_TEXT, 0, 0, 0);
ObjectSetText("FibS3", "Fib S3",fontsize,"Arial",Red);
ObjectCreate("FibR3", OBJ_TEXT, 0, 0, 0);
ObjectSetText("FibR3", "Fib R3",fontsize,"Arial",Red);
}
if(counted_bars<0) return(-1);
//---- last counted bar will be recounted
// if(counted_bars>0) counted_bars--;
limit=(Bars-counted_bars)-1;
for (i=limit; i>=0;i--)
{
if (High[i+1]>LastHigh) LastHigh=High[i+1];
if (Low[i+1]<LastLow) LastLow=Low[i+1];
if (TimeDay(Time[i])!=TimeDay(Time[i+1]))
{
P=(LastHigh+LastLow+Close[i+1])/3;
R = LastHigh-LastLow;
R1 = P + (R * 0.382);
S1 = P - (R * 0.382);
R2 = P + (R * 0.618);
S2 = P - (R * 0.618);
R3 = P + (R * 0.99);
S3 = P - (R * 0.99);
LastLow=Open[i]; LastHigh=Open[i];
ObjectMove("Pivot", 0, Time[i],P);
ObjectMove("FibS1", 0, Time[i],S1);
ObjectMove("FibR1", 0, Time[i],R1);
ObjectMove("FibS2", 0, Time[i],S2);
ObjectMove("FibR2", 0, Time[i],R2);
ObjectMove("FibS3", 0, Time[i],S3);
ObjectMove("FibR3", 0, Time[i],R3);
}
PBuffer[i]=P;
S1Buffer[i]=S1;
R1Buffer[i]=R1;
S2Buffer[i]=S2;
R2Buffer[i]=R2;
S3Buffer[i]=S3;
R3Buffer[i]=R3;
}
//----
return(0);
}
//+------------------------------------------------------------------+
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