Creating a Fibonacci pivot point calculator in Microsoft Excel can be a useful tool for traders who use technical analysis to make trading decisions. Pivot points are a popular technical analysis tool that uses the Fibonacci sequence to identify potential levels of support and resistance. In this article, I will try to explain step-by-step procedures to create a Fibonacci Pivot Point Calculator in Excel. I hope it will be very helpful for you if you are looking for an efficient way to do so.
Introduction to Fibonacci Pivot Point Calculator
A Fibonacci Pivot Point Calculator is a tool used in technical analysis to identify potential levels of support and resistance. This calculator is based on the Fibonacci Sequence, which is a series of numbers often used in financial analysis.
To use a Fibonacci Pivot Point Calculator, a trader would first need to enter the high, low, and closing prices for the asset they are analyzing. These prices are then used to calculate a series of pivot points, which can be used to identify potential levels of support and resistance.
Formulas to Calculate Fibonacci Pivot Point
In order to create a Fibonacci Pivot Point Calculator, we need to use the following formula. Here, we need to consider the High, Low, and Close prices of the asset to calculate the Pivot Point, Resistance, and Support values.
- Pivot Point = (High + Low + Close) / 3
- Resistance 1 = Pivot Point + ((High – Low) x 0.382)
- Resistance 2 = Pivot Point + ((High – Low) x 0.6182)
- Resistance 3 = Pivot Point + ((High – Low) x 1.000)
- Support 1 = Pivot Point – ((High – Low) x 0.382)
- Support 2 = Pivot Point – ((High – Low) x 0.6182)
- Support 3 = Pivot Point – ((High – Low) x 1.000)
How to Create a Fibonacci Pivot Point Calculator in Excel: Step-by-Step Procedures
In order to create a Fibonacci Pivot Point Calculator, we need to apply the arithmetic formulas related to it and find out the Pivot Point, Resistances, and Supports. The whole process is described in the following section. Let’s march forward.
Step 1: Collect Data to Create Fibonacci Pivot Point Calculator
- It is the first and foremost task to collect the High, Low, Close, and Open Values of a particular asset.
Step 2: Create Fibonacci Pivot Point Calculator
- As part of the Fibonacci Pivot Point Calculator, firstly we have to calculate the Pivot Point. Apply the following formula for this purpose.
=(C5+C6+C7)/3
- For the first resistance calculation, insert the following formula and press the ENTERÂ button.
=C9 + (0.382 * (C5 - C6))- Here, C9 is the Pivot Point, C5 is the High value, and C6 is the Low value of a particular asset.
- Followingly, insert the following formula and press the ENTER button to have the second resistance value.
=C9 + (0.6182 * (C5 - C6))
- Then, input the formula mentioned below and hit the ENTER button to have the third resistance value.
=C9 + (1 * (C5 - C6))
- After that, we will have to calculate the Support For the calculation of Support 1, write down the following formula and press ENTER.
=C9 - (0.382 * (C5 - C6))
- Followingly, insert the following formula and press the ENTER button to have the second support value.
=C9 - (0.6182 * (C5 - C6))
- Finally, insert the following formula and press the ENTER button for the third resistance calculation.
=C9 - (1 * (C5 - C6))
Thus, we can have a simple Fibonacci Pivot Point Calculator.
Download Practice Workbook
Download this practice workbook to exercise while you are reading this article.
Conclusion
At the end of this article, I like to add that I have tried to explain step-by-step procedures to create a Fibonacci Pivot Point Calculator in Excel. It will be a matter of great pleasure for me if this article could help any Excel user even a little. For any further queries, comment below. You can visit our site for more articles about using Excel.
