# Fibonacci pivot

Can fibonacci pivot in mt4 be use as support/resistance and pivot for trading forex?

Can just entering trades according to the fib entry and exit points work profitably??

No. I don’t think trading off of fibs alone can be profitable. I have personally found that the probability of a winning trade increases when it is validating another tool to decipher price movement.

I’m confused.

You asked about [B]Fibonacci Pivots,[/B] but the replies you have gotten refer to [B]Fibonacci retracement levels —[/B]
which is something else altogether.

Did you actually mean [B]Fibonacci Pivots?[/B]

Yes , I mean Fibonacci Pivots.

Well I try to be helpful as best I can but I think with regards to this thread in particular it might be a good Idea to grab your satchel, don your caps, grab an apple from the fruit bowl and head off to the school of pipsology (second tab from the left at the top of the page) your questions (whatever they are) will be answered there.

The [B]Fibonacci Pivot System[/B] is one of several systems which project a series of S/R levels into the current time period, based on the High, Low, and Close of the previous time period. (Some systems also use the Open of the previous time period for these calculations.)

Time periods in any [B]time frame[/B] can be used for pivot calculations: Monthly, Weekly, Daily, 8-hour, 4-hour, 1-hour, etc. Most traders will tell you that pivots are more useful if calculated on the higher time frames, and less useful if calculated on the lower time frames. The break-point seems to be the 30-minute time frame, or thereabouts. In other words, pivots calculated on the 30-minute time frame (or higher) are respected (to some degree) by prices in the forex market; below the 30-minute time frame, not so much. Notice that we are talking about the time frame on which the pivots are [B]calculated,[/B] not the time frame of the chart on which they are [B]displayed.[/B] Pivots calculated on the Daily time frame, for example, can be displayed on a Daily chart, or on any lower time frame chart.

Of the several different pivot systems which are easily accessible through [B]online pivot calculators,[/B] the most common are: the so-called [B]Classic Pivots, Camarilla Pivots, Fibonacci Pivots and Woodie Pivots.[/B] Of these, Classic Pivots are, by far, the most commonly used. All of these pivot systems, except the Woodie Pivot System, calculate the [B]pivot[/B] (sometimes called the central pivot) in the same way. But, they differ in the way they calculate the resistance levels ([B]R1, R2,[/B] etc.) above the pivot, and the support levels ([B]S1, S2,[/B] etc.) below the pivot.

Given the fact that these systems all define different support and resistance levels on the same chart, the obvious question is, ‘Which system of pivots gives the best results? — That is, which system of pivots is most consistently respected by prices in the forex market?’

If a systematic comparison of the various pivot systems has been done, I’m not aware of it. But, I have to admit that I haven’t gone looking for such a comparison, either. As a long-time user of Classic pivots calculated on the Daily time frame (basis 5pm New York time), I have my own opinion about what works (for me) and what doesn’t. But, it’s just an opinion. Let me frame my opinion in terms of market psychology.

[B]There is absolutely no reason why price should respect pivot levels,[/B] Fibonacci retracement levels, moving-average lines, or any other representation of so-called support and resistance, EXCEPT that a significant number of traders expect price to respect those levels. In other words, this “respect” of support and resistance levels is largely a self-fullfilling prophesy — it happens, with some regularity, because enough people expect it to happen.

That being said, if [B]more traders use Classic Pivots[/B] than Fibonacci Pivots (or any other system of pivots), it must mean that [B]more traders expect the Classic Pivot levels to be respected.[/B] And, if enough people expect it, it’s going to happen. To me, that’s a good argument for using the system that most of the other traders out there are using.

If support and resistance levels, including pivot levels, are largely a matter of delusion, then crowd psychology is key.
In other words, the majority rules in this case, in my opinion.

In the final analysis, the only thing that works in the forex market is what works [B]for you.[/B] If you find that Fibonacci Pivots give you trade-able information, and if you prefer them over the other pivot systems out there, then your question is answered. All of the experimenting and testing required to make that determination is [B]your[/B] responsibility. Nobody, but you, can determine what works for you, and what you are comfortable with.

If you were hoping for some sort of absolute ruling on the validity of Fibonacci Pivots, then I’m sorry to disappoint you.