Fibonacci Trading System has been designed to assist the traders who rely on Fibonacci levels in order to make the trading decisions. Besides demonstrating the Fibonacci Hi-Lo levels of the market, this system also plots signals on the market entry-level, SL, and predetermined Take Profit(TP) levels for its users.
Fibonacci Trading System is applicable to trade all kinds of forex currency pairs available at the market. However, this system works only at short-term or intraday timeframes thus fit great with M1 to H1 charts.
Fibonacci Trading System Overview
Complete the installation of the System at the MT4 platform. Once you’re done, your chart will appear like the following image:
Fibonacci Trading System: Anatomy
- Fibonacci Hi-Lo Levels: Determines possible retrace levels of the price movements. These levels can also be treated as the current support/resistance areas. Since these levels change their positions with the change of price actions, you can also use them to update the stop levels of your open trade positions. This indicator also plots possible market entry level, stop loss, and take profit positions for its users. However, it is not mandatory to follow such guidelines blindly. You can take your own trading decisions based on the Fibo levels and other assisting tools/filters.
- Profitable Strategy V2: It is a simple trend-based indicator used to filter trade signals generated by other indicators of this system. If you’re thinking of going long, you need to make sure that Profitable Strategy V2 turns yellow in color along with arrows pointing upwards. For short entry, the indicator should be turned red along with a series of downward arrows.
Also Read: Heiken Ashi Trend CCI Strategy
Fibonacci Trading System: Buy Rules
- Price bounces upwards from the lower Fibonacci Hi-Lo level
- Profitable Strategy V2 turns yellow and plots upward arrows
- Buy triggers when the above conditions are met
- Set stop loss below the low of the lower Fibonacci Hi-Lo level or follow stop level defined by the system
- Exit long/take profit whenever price hits the take profit level predetermined by the system or when the price hits the upper Fibonacci Hi-Lo level
Fibonacci Trading System: Sell Rules
- Price jumps downwards from the higher Fibonacci Hi-Lo level
- Profitable Strategy V2 turns red and plots downward arrows
- Sell triggers when the above conditions are met
- Set stop loss above the high of the higher Fibonacci Hi-Lo level or follow stop level defined by the system
- Exit short/take profit whenever price hits the take profit level predetermined by the system or when the price hits the lower Fibonacci Hi-Lo level