The secret to successful trading with the Fibonacci Levels is understanding that Fibonacci is just a tool that is not something mystical or magical about it. But, when employed properly with a couple of other simple things will help you to catch some enormous profitable, high-reward low-risk trading opportunities that you can take advantage of literally every day. Since normally you’ll have to draw manually the Fibonacci retracement there is a much-simplified way by using the Auto Fibonacci MT4 Indicator which will draw the most important Fibonacci levels automatically as you’ll only have to drag and drop the indicator on the chart.
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Auto Fibonacci MT4 Indicator – Chart Setup and Settings
Basically, what this MT4 indicator does is to try to find the highest high and the lowest low levels between a predefined interval of bars (the StartBar and BarsBack) and it will automatically plot the Fibonacci levels of that range bars. By default the StartBar is set to zero which means the indicator will start looking for the highest high and lowest low starting from the current bar while the BarsBack variable is by default set at 20 which means the indicator will look starting from the current bar through the last 20 bars and will plot the Fibonacci levels of that range.
Auto Fibonacci MT4 Indicator – Chart Setup
Going forward, we’re going to look at one particular intraday strategy that will make the best use out of this very handy indicator. This strategy has very straightforward entry and exit rules that use a protective stop loss which anyone can follow.
Auto Fibonacci MT4 Indicator – Configuration and Settings
Auto Fibonacci MT4 Indicator – Trading Rules
The basic premise behind this strategy is to measure the trading range through the day until the London open and plot the Fibonacci Retracement levels against this range. Once we have the trading range established which is done directly through the Auto Fibonacci MT4 indicator by manipulating the settings we’re going to trade the first pullback to the 50% Fibonacci retracement level. In order to find the exact high and low levels we’ll plot the Auto Fibonacci MT4 indicator with the following settings:
- StartBar: 0, from the current bar (if you plot the indicator at the London open);
- BarsBack: 10; We’re going to use as the opening of a new day the 5:00 PM EST the time when the New York session close and a new trading day start.
Auto Fibonacci MT4 Indicator – Long Trading Rules
Auto Fibonacci MT4 Indicator – Short Trading Rules
It’s important to note that we want to plot the indicator with the above setting only on the 1h chart otherwise we have to plot the indicator on lower TF with the appropriate settings.
Without further ado, here are the exact rules:
- Entry Rules: Buy/Sell at the first touch of the 50% Fib Retracement;
- Exit Rules: Fixed target of 30 pips;
- Stop Loss: Above/below the zero, respectively 100 Fibonacci level.
Time Frames
Technically speaking, you can use the Auto Fibonacci MT4 Indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.
The Auto Fibonacci MT4 Indicator is definitely a very handy tool for traders based on the simplicity involved in loading up this indicator quickly.
Auto Fibonacci MT 4 Indicator Download
We have provided this useful indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.
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