The two Fibonacci pivot ratios I focus on are 0.184 and 0.702. I draw both as zones because price often interacts with an area rather than one exact number.
The calculation starts with the previous completed period’s high, low and close:
Pivot = (High + Low + Close) / 3
Range = High − Low
Resistance = Pivot + ratio × Range
Support = Pivot − ratio × Range
The 0.184 zone spans ratios 0.146–0.236. The 0.702 zone spans ratios 0.618–0.786. The same bands are calculated above and below the central pivot.
How I read the grid
The area between S0.184 and R0.184 is what I call the neutral range. Around the central pivot, I watch for consolidation rather than assume either side has control. Above R0.184, my next major reference is the R0.702 zone. Below S0.184, it is the S0.702 zone. The intermediate 0.382 level gives me another reference along that path. The 0.702 zones are where I pay closer attention to a potential opposing reaction. If price cannot progress through that area, I watch for a return toward 0.184, sometimes extending to the central pivot. That is the mean-reversion move in this framework.
These are reference areas, not automatic entries or guaranteed targets. Their purpose is to organise where price is trading and which zone I am watching next.
For monthly pivots, use the previous completed month’s data. For yearly pivots, use the previous completed year. That makes the grid available at the beginning of the new period.
The calculation starts with the previous completed period’s high, low and close:
Pivot = (High + Low + Close) / 3
Range = High − Low
Resistance = Pivot + ratio × Range
Support = Pivot − ratio × Range
The 0.184 zone spans ratios 0.146–0.236. The 0.702 zone spans ratios 0.618–0.786. The same bands are calculated above and below the central pivot.
How I read the grid
The area between S0.184 and R0.184 is what I call the neutral range. Around the central pivot, I watch for consolidation rather than assume either side has control. Above R0.184, my next major reference is the R0.702 zone. Below S0.184, it is the S0.702 zone. The intermediate 0.382 level gives me another reference along that path. The 0.702 zones are where I pay closer attention to a potential opposing reaction. If price cannot progress through that area, I watch for a return toward 0.184, sometimes extending to the central pivot. That is the mean-reversion move in this framework.
These are reference areas, not automatic entries or guaranteed targets. Their purpose is to organise where price is trading and which zone I am watching next.
For monthly pivots, use the previous completed month’s data. For yearly pivots, use the previous completed year. That makes the grid available at the beginning of the new period.
