ChannelsFIBO Forex Indicator is a retracement based forex trading indicator, used to identify the key retracement levels considered as potential swing areas of the market. Newbie traders often struggle to determine the Fibonacci retracement level because they get confused while setting it up on the chart manually. This indicator is an ideal solution for such traders who wish to trade from the pullback of the price using the Fibonacci technique.
ChannelsFIBO Forex Indicator is a versatile trading tool, suitable to trade all kinds of forex currency pair around the market. Moreover, it suits all sorts of timeframe charts available within the forex mt4 trading platforms.
ChannelsFIBO Forex Indicator Overview
Once you’re done with the installation of the indicator at your MT4 terminal, your chart will appear like the following image:
Also Read: Non-Repainting Supertrend Indicator
ChannelsFIBO Forex Indicator Explanation
ChannelsFIBO Indicator defines important retracement levels like 23.6%, 38.2%, 50%, and 61.8% on the chart. These levels are often respected by the price as potential support or resistance. This indicator is able to update these key levels on an automatic basis. All you need to do is to wait until the price hits these potential areas. You can add a price action method for the better confirmation of the trade signals.
ChannelsFIBO: Buy Conditions
- Price enters the lower retracement zone
- A bullish bar is formed above any of the respected fibo-levels
- Enter buy at the break of the respected bullish bar’s high
- Set stop loss below the current support level
- Exit long/take profit whenever price hits the upper 61.8% zone
ChannelsFIBO: Sell Conditions
- Price enters the upper retracement zone
- A bearish bar is formed below any of the respected fibo-levels
- Enter short at the break of the respected bearish bar’s low
- Set stop loss above the current resistance level
- Exit short/take profit whenever price hits the lower 61.8% zone