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2018issue C0514-21

Constructing Fibonacci and daily pivot support maps

Lock the swing that defines a Fibonacci projection, lock the session clock that defines the daily pivot ladder, then treat both maps as inputs to one written buy, sell, or stand-aside rule.

  • A Fibonacci projection is drawn from two turning points by marking 100%, 61.8%, 50%, 38.2%, and 0% of the vertical span, then extending targets at 161.8%, 261.8%, and 423.6%.
  • After two or three bars that appear to end a decline, an up-projection can be drawn from that last down-wave without waiting for a later swing high. A rebound past 61.8% of a first down-leg is no longer a simple pullback of that leg.
  • Daily pivot rungs are computed only on a fixed-time chart from a complete prior session, so the session clock must be locked first. An incomplete first day is unusable, and valid values appear on the third plotted day.
  • Constructed Fibonacci and pivot levels are inputs to a written buy, sell, or stand-aside procedure rather than standalone forecasts.
Entries in this reading3 entries
Current trackPivot point45 readingsSupport and resistance170 readingsRule-based entry174 readings

Construction order

A Fibonacci projection is a set of horizontal retracement and extension lines taken from two turning points at fixed ratios of the measured span. A pivot-point map is a session-based grid of a central pivot plus stacked support and resistance rungs computed from the prior period high, low, and close.

Both constructions produce support and resistance: passive horizontal price lines taken from prior turning points, Fibonacci ratios, or pivot rungs and used as expected pause or turn locations.

Lock the swing

Fibonacci retracement lines are constructed by measuring the vertical span between two turning points and marking 100%, 61.8%, 50%, 38.2%, and 0% of that span. Fibonacci target lines are extended from the same two-point span at 161.8%, 261.8%, and 423.6% of the measured move.

After two or three bars that appear to end a decline, an up-projection can be drawn from that last down-wave without waiting for a later swing high. A rebound that travels past 61.8% of a first down-leg is treated as no longer a simple pullback of that leg.

Lock the session clock

The session clock is the agreed open and close used to define one complete prior day before any daily pivot rungs are calculated. The central daily pivot is the mean of the prior day's high, low, and close, and the first three support and resistance rungs are computed from that pivot and the prior day's high and low. Halfway levels between adjacent pivot rungs, together with the prior day's high and low, are added as extra static support and resistance lines.

Pivot rungs are computed only on fixed-time charts from a complete prior session. A first incomplete day yields unusable levels, and valid values appear on the third plotted day. Around-the-clock markets need one agreed day-start clock. Otherwise each local or server timezone would produce a different support and resistance grid.

In the compared forex week, starting the week at the Sunday reopen aligned price with the pivot rungs more closely than folding Sunday into the prior Friday.

Write one entry or stand-aside rule

A rule-based entry is a written procedure that turns a constructed chart condition into a testable decision to enter, wait, or stand aside. Constructed Fibonacci and pivot levels are inputs to that written buy, sell, or stand-aside procedure rather than standalone forecasts.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
33 of 38 in the Pivot point track
201848-58 pp.Next on Pivot pointBuilding a daily pivot lattice with Fibonacci railsThe central pivot is the mean of the prior session high, low, and close, and it is the origin for the rest of the daily grid.
All readings on this track · 38 readings
  1. 1988Constructing action-reaction lines from two pivots
  2. 1988Constructing intradaily point-and-figure boxes and pivot ladders
  3. 1991Constructing layered support and resistance from swings, pivots, and retracements
  4. 1994Three locks on a day-session order, then a staged exit
  5. 1994Building a five-level daily pivot grid
  6. 1996Constructing daily pivot points from session prices
  7. 1996Higher time frame balance points as a trend and band filter
  8. 1998Cup-with-handle construction rules
  9. 2000Pivot levels as a daily trade hypothesis
  10. 2001Construct a same-session polarity card around the daily pivot
  11. 2001Trading inside the cup-with-handle before the breakout
  12. 2005A lower-low rebound as one entry, abstention, and stop routine
  13. 2006Constructing session pivot maps from the prior high, low, and close
  14. 2006Constructing a pivot grid for stops and buy-stops
  15. 2006Monoparametric automatic trendline construction
  16. 2008Write the exit before the entry
  17. 2010Dynamic-pivot range grids for trend bias
  18. 2010Reverse-entry exits for pairs, pivots and support
  19. 2011Sequencing pairs, futures pivots, and implied volatility
  20. 2013Constructing Camarilla levels from prior range
  21. 2013Camarilla levels as a multi-timeframe map of reversion and breakout
  22. 2013Constructing a camarilla-grid from a completed lookback range
  23. 2013Constructing daily pivot support and resistance rungs
  24. 2014Constructing daily pivot levels from prior-session OHLC
  25. 2014Next-session pivot support and resistance from daily bars
  26. 2014Constructing session pivot rails from the prior-day range
  27. 2014Evaluating moving-average, pivot, and support-resistance filters
  28. 2016Stage a Trailing stop toward a planned target
  29. 2016Smoothed RSI and full-cut pivots for option-income exits
  30. 2017Constructing a weekly seasonality pivot scaffold
  31. 2017Seasonality and pivot points as scenario maps, not forecasts
  32. 2018Wave pivots, strength filters, and option premium
  33. 2018Constructing Fibonacci and daily pivot support maps
  34. 2018Building a daily pivot lattice with Fibonacci rails
  35. 2019Prior-session pivot channels for same-day entries
  36. 2019Constructing intraday pivot channels from prior-session levels
  37. 2020Variable-strength pivot highs as falsifiable entry filters
  38. 2020A high-volume-pivot long after a multi-week decline
By fieldTrend and channels181 readingsBy year201898 readings
All 45 readings tagged Pivot point
Also on Pivot point5 readings
1988Constructing intradaily point-and-figure boxes and pivot ladders1991Constructing layered support and resistance from swings, pivots, and retracements1994Building a five-level daily pivot grid1996Higher time frame balance points as a trend and band filter2000Pivot levels as a daily trade hypothesis