The auto fibo trade zone indicator is designed to draw Fibonacci retracement. Traders love fibo retracement levels because they are so perfect that the forex market tends to respect these most of the time.
Auto fibo trade zone indicator explained
Fibo points I mentioned above are represented on the chart by horizontal lines. These lines act as support and resistance zones/resistance levels. Many professional traders recommend using Fibonacci retracement.
Although there are many technical methods in trading, hardly any works in every situation, whether it is ranging mode or trending mode, but experts and professional traders find that Fibonacci ratios like 50 %, 61.8% are respected by price most of the time. Technical analysts like 23.6%,38.2%,50%,61.8%,78.6% levels most.
Why do Fibonacci retracements work
Do you know why does Fibonacci retracement work? Because there are many traders worldwide who also keep an eye on these levels. Suppose your EUR/USD currency pair is in a downtrend. You missed the initial move, or as a conservative trader, you wish to confirm the trend first, then you will jump to the current trend. When the price rose again and was rejected from the 50% fibo level, traders like you will open sell orders. Now the fun fact is that you are not alone here. Many traders are waiting like you to open trade from a 50% retracement level. As so many traders trade from the same levels, it works. Although the Fibonacci trading indicator works on any timeframes, professional traders prefer a higher timeframe like 4 hours to trade with this indicator.
Trading strategies/Trading rules using auto fibo trade zone indicator
You can use Fibonacci retracement on different timeframes and different charts.
Many traders mistake conjecturing Fibonacci extensions with technical indicators like rsi and stochastics. But it’s the wrong approach. If you trade with fibo, then use fibo alone.
In a downtrend, try to open sell trade on 61.8% or 78.6% levels if you find any strong bearish candle in these levels. If you find an uptrend, wait for the price movement to return to 23.6% or 38.2% levels. If you find any solid bullish candle or bullish pin bar, open buy trade.
Caution when using auto fibo trade zone forex trading indicator
Always try to use this indicator in the trending financial markets. You don’t know how accurate Fibonacci retracement is in a trending market. But if you want to catch every move of the market and trade randomly, even in a choppy market, then you will miserably lose all your capital. The swing trading zone is very important here. Don’t make a mistake. Find your right trading zone. Although there are many pairs like major, minor,cross, exotic, you will get the best output if you stick to only top major pairs.
Auto fibo trade zone indicator download
auto fibo trade zone indicator mt5 and auto fibo trade zone indicator mt4 are the same. Therefore, you can apply the indicator on both of your charting platforms.
If you are an mt4 lover, then go for mt4 and if you find mt5 more convenient, then apply it on mt5.no problem at all.
But as most of the traders in the world trade on the mt4 charting system, they choose the auto fibo trade zone mt4 indicator most.
Auto fibo trade zone indicator download from here.
Auto fibo trade zone indicator is a beast if you combine it with price action. More specifically, the Doji pattern, pin bar pattern will be profitable if formed in Fibonacci trading zone areas.
How is Fibonacci retracement used in the intraday trading chart?
Use a 30 minutes chart and find your intraday set up in the London and US sessions only. If you wish to trade intraday, don’t trade on the Asian session.
Which Fibonacci levels are important?
23.6%,38.2%,50%,61.8%,78.6% levels are most important.
How do you use Fibonacci retracement and extension?
Find bullish or bearish pin bars in fibo levels. If you find these price action setups rejecting strong fibo levels, then be sure that your trade will profit soon.
How do you use auto fibo?
Just download the auto indicator. Copy it, go to open data folder option .open mql4 folder, open the indicator folder, and paste the indicator here. Now apply your auto indicator here and find the perfect trade setup.
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