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how to read and trade the pivot points and fibonacci levels reports

how to use the pivot points and fibonacci levels reports to put historical hit rates behind the levels you already draw, including the by-prev-candle and by-weekday subreports.

Written by Brad

summary: how to use the pivot points and fibonacci levels reports to put historical hit rates behind the levels you already draw, including the by-prev-candle and by-weekday subreports and the pivot calculation-method setting.

what it measures

both of these reports take a set of predefined levels and answer the same question: how often does price actually reach or react at each one? instead of treating pivots and fibs as technical folklore, they put a historical hit rate behind every level.

  • pivot points — the central pivot plus its support and resistance levels, calculated from the prior period's high, low, and close

  • fibonacci levels — the retracement levels (0 through 1) of the previous session's range, anchored on whether that session closed green or red

both also frame the day by where price opened relative to the levels, and the pivot points report plots today's live level values for your ticker. the value is turning a level you'd draw anyway into a data-backed target or reaction zone — you know which levels price tends to reach and which it usually doesn't.

how to read it

a high hit rate at a level means it's a reliable target or reaction zone — a good spot to take profit or expect a bounce. a low hit rate means price rarely gets there, so don't build a plan around it.

hit rates naturally fall off the further a level sits from price — the first level gets reached far more often than a distant one. that decay is the useful part: it tells you which levels are realistic targets today and which are wishful. open the report for the ticker and session you trade to see the rate at each level.

the reports

pivot points

how often price reaches or rejects at each pivot level — R3 down to S3 around the central pivot (PP) on traditional pivots, out to R5/S5 on camarilla — plus today's live pivot values for your ticker. two subreports refine it: by prev candle conditions the behavior on how the prior candle closed (pivots often behave differently after a green period than a red one), and by weekday filters the hit rates to a single day of the week. the customize button lets you switch the pivot calculation method — traditional is the default — so the levels match the formula you use on your own chart.

fibonacci levels

how often price reaches each fib retracement level, from 0 through 1 (0.236, 0.382, 0.5, 0.618, 0.786). like the pivots view, it frames the day by where price opened relative to the levels, and you can condition it on whether the previous day closed green or red. the by weekday subreport filters those hit rates to one day of the week.

how traders use it

the core use is targets and reaction zones with data behind them. if you're already long, the level with the highest hit rate above price is your take-profit; if you're looking for an entry, a high-hit-rate level below is a spot to expect a bounce.

they work best as confluence, not on their own. a fib or pivot level that lines up with a level from another report — a previous day's high, a session boundary — is a far stronger spot than either on its own. keep the levels drawn on your chart so you can see when price is approaching one.

tips

  • respect the decay. the nearest levels are the tradeable ones — a distant level with a low hit rate is not a target, it's a hope.

  • match the pivot calculation method to whatever your charting platform uses, so the report's levels line up with the ones you're trading.

  • use them for confluence. a level is strongest when a second report points to the same price. confirm the read holds across 1 year, 6 months, and 3 months before you lean on it, and remember consistent results take customization and reps.

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