The 3 Main Indicators I Use – Fibonacci drawing tool on MT4

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Fibonacci Indicators for MetaTrader-4 and MetaTrader-5

Fibonacci Indicators for MT4 and MT5

MT4 / MT5 Fibonacci Indicators

Prices of financial instruments tend to move in long-term circles. These circles include several waves and five times more sub waves. The application of a Fibonacci indicator can prove helpful in determining areas of potential price reversals within these waves and their sub waves.

Fibonacci ratios suggest general price areas and not exact price levels and therefore we must use another tool to confirm any decision such as an indicator, candlestick formation, price pattern, etc. Don’t blindly accept reversals near Fibonacci levels. Always confirm your entry signals and trade them very selectively. Adding a Fibonacci Indicator into an existing trading system can bring several benefits:

Identify high-probability trades

Place accurate stop-loss orders and thus minimizing the loss potential

Identify low-risk entries at the early stages of strong trends

Forecast potential profit targets

Boost the average Reward/Risk ratio

These are some popular Fibonacci Indicators for MetaTrader-4 and MetaTrader-5. Only the first indicator is commercial, all the others are free. The advantage of the commercial Fibo Machine is that it generates specific trading signals (entry, take-profit, and stop-loss) and delivers them via email. From the six indicators that are presented below, the first 4 are coded for MT4 and the last 2 for MT5.

For those who are beginners and don’t know how to insert indicators into MT4 / MT5, there is a short tutorial at the end.

(1) Fibo Machine Pro for MT4

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Generates trading signals based on Fibonacci Ratios and delivers them via email, visually, or pop alerts

Fibo Machine Pro is a commercial MT4 indicator for identifying entry/exit based on s mart Fibonacci Levels. The indicator combines algorithms with the Fibonacci ratios to generate specific signal levels.

After you apply the Fibo Machine Pro in any chart, it calculates automatically the main Fibonacci levels and then generates three colorful levels that are displayed visually on the chart . These 3 colorful lines represent Entry, Take Profit, and Stop-Loss level s.

Fibo Machine Pro indicator incorporates a customizable alert system that includes:

Pop-up alert with sound

There is full customer support for setting up the indicator but also for using it.

The Fibo Machine Pro costs $87 for unlimited use

(2) AutoFibo – Automated Fibonacci MT4 Indicator

Automate Fibonacci Levels

AutoFibo is an easy-to-use MT4 indicator for identifying automatically Fibonacci levels in any chart view. That means you don’t have to insert manually the Fibonacci levels by using the Fibo nacci tool . After you apply the AutoFibo indicator in any chart, the indicator calculates and draws the Fibonacci retracement levels: 23.6%, 38.2%, 50.0%, and 61.8%. The values 100% and 0% represent the move between top and bottom.

As you switch to different timeframes the indicator is adjusting the Fibonacci levels to the corresponding high / low values. It is a nice tool given it is free.

Download it from here:

(3) QuickFib – indicator for MetaTrader 4

Automate Fibonacci Levels

QuickFib, as in the case of AutoFibo, calculates and draws automatically all Fibonacci levels based on the tops and bottoms of any chart view. When you switch to another timeframe, QuickFib finds new tops and bottoms. The indicator draws two trend-lines and a rectangle which shows the length of the price move.

Download it from here:

(4) AutoFib TradeZones – indicator for MetaTrader 4

Autotrace Fibonacci Zones for trading Ranging Markets

AutoFib TradeZones is an alternative trading tool based on Fibonacci ratios. The indicator is used for trading ranges or price breakouts.

You can either use auto-retrace a period or use it manually by placing Start / End lines.

Download it from here:

(5) Auto Fibonacci indicator for MetaTrader 5

Autotrace Fibonacci Zones

This is an automated Fibonacci indicator for MT5. It automatically finds the Higher and Lower points of any chart view and after it calculates and draws the Fibonacci Levels: 23.6%, 38.2%, 50.0%, 61.8%, 161.8%, and 261.8%.

Download it from here:

(6) Fibonacci Pivot Points for MetaTrader 5

Autotrace Fibonacci Pivots

The MT5 indicator applies Fibonacci multiples to identify and draw significant support and resistance levels. The pivots are displayed as a line between support and resistance. Once it is calculated, the Fibonacci Pivot will stay in the chart until the trading day ends.

The Pivot Points are simply calculated as: Pivot = (High + Low + Close) / 3

Download it from here:

How to Add any Indicator on MT4 or on MT5 (short tutorial for beginners)

It is particularly easy to apply any indicator on MT4 or MT5, here are some simple steps :

(1) Download the MetaTrader indicator, unzip it, and get the file either in .EX4 or .MQL4 (it is practically the same)

(2) Find the location on your hard drive where your platform is installed (you can do that very easily if you right-click on the icon of your platform and then select ‘Open File Location’)

(3) Save the location of your Platform’s install into a text file in order to find it easily every time you add a new indicator

(4) Open the main folder of the platform’s install and go to the subfolder ‘MQL4’, then go to the subfolder ‘Indicators’

(5) Copy the new indicator (.ex4 or .mql4) there and remember the name of the file

(6) Now start (or restart) your Metatrader platform

(7) Open any chart and then go to ‘INSERT’ from the top menu, after to ‘INDICATORS’, and finally to ‘CUSTOM INDICATORS’, and click on the indicator you have added before

(8) On the pop-up window adjust your settings and select the timeframes where it will be visible (all timeframes visibility by default)

That is all, your indicator you will be visible until you remove it. Alternatively, you can find also the new indicator in the Navigator Window, left in your Metatrader Client if you press Ctrl-N. If you want to remove it just right-click in any chart and select the ‘Indicators list”. There you can select the indicator from the list and delete it from any chart view.

How to use Fibonacci in trading

Trading based on the Fibonacci method is a unique way of analysing markets. The Fibonacci hypothesis that was developed by the famous mathematician, Leonardo de Pisa, has stood the test of time.

Even to this day, traders apply the concepts of Fibonacci and the golden ratio; represented by the number 1.618, in various forms of technical analysis. Fibonacci methods, however, are most commonly applied to identify support and resistance levels.

Traders use the Fibonacci numbers in order to estimate where prices might retrace or reverse by measuring the most recent leg of an uptrend or downtrend.

Fibonacci-based trading methods work due to the fact that they’re widely practiced. So, despite the mysticism attached to this form of technical analysis, it is, in fact, a self-fulfilling prophecy. To put it in other words, given the widespread use of Fibonacci-based methods of analysis, traders tend to watch these levels and trade based on the Fibonacci levels, making them into forms of support and resistance that simply work.

Before we get into more detail on the subject of Fibonacci trading, a bit of history and context is required.

Where did the Fibonacci numbers come from?

It is said that in the year 1202, Leonardo de Pisa, or Leonardo Pisano, who was born in Pisa, discovered the Fibonacci sequence of numbers. Although the Fibonacci sequence is largely attributed to Leonardo, his knowledge came from his travels to the Far East. Having learned about the Hindu-Arabic numeral system, Fibonacci documented his discovery in his famous work; “Liber Abaci”, which eventually led to his nickname as Fibonacci.

The works of Leonardo eventually gave way to the discovery of what is called “the golden ratio.”

The golden ratio has been proven to appear, not just in the financial world of trading, but in every aspect of life; from famous pieces of Ancient Greek architecture, to nature. The most famous example of the golden ratio is the nautilus shell. The golden ratio can be seen in the nautilus shell, which expands in a logarithmic spiral. By connecting the arcs with squares, or Fibonacci tiling, the sizes of the squares follow the Fibonacci sequence of numbers.

Understanding the Golden Ratio or Phi

The golden ratio, or phi, is the number 1.618. The inverse of this is 0.618. Phi (pronounced “fi” or “fy”) is the ratio of the length of one line segment to another, which results from dividing the original line at a certain point. For example, the distance from point A to point C in the line below is said to be 1.618 times that of the distance from point B to point C, and the distance from B to C is 0.618 times that of A to C. In mathematics, phi with an upper-case ‘P’ represents 1.618, while phi with a lower-case ‘p’ represents the inverse, which is 0.618.

The golden ratio occurs in the numerical series developed by Leonardo, also known as the Fibonacci sequence of numbers.

What is the Fibonacci sequence of numbers?

Leonardo described his sequence of numbers in the following way:

0,1,2,3,5,8,13,21,34,55,89,144,233 and so on.

The further you progress into the sequence; you will find that each number becomes 1.618 times greater than the preceding number. For example, when you divide 89 by 144, you get 0.618, but when you divide 89 by 55, you get 1.618; the golden ratio. This is similar to the illustration given in figure 1 with regards to points A and B in relation to point C.

Based on the Fibonacci sequence, we now know two main ratios; phi, which is 1.618 and its inverse; 0.618. Aside from the above, other ratios include 0.382. This ratio is formed when you take a number and divide it by the number two places to the right.

Thus, 89/244 = 0.3819 or 0.382 when rounded to 3 decimal places. Further variations also derive other ratios such as 0.236, which is derived from taking a number and dividing it by the number four places to the right. In the world of technical analysis, the following ratios are the most important: 0.236, 0.382, 0.618, and 1.618. Of course, you can find many other ratios, but the above four are the most important.

How to use Fibonacci ratios in Forex trading

Traders know that prices never rise in a straight line. Prices tend to rally or decline, then retrace, and then continue in the direction of the previous trend. By using Fibonacci ratios, you can measure a wave (a rally or a decline) and then anticipate where the price might retrace when it pulls back.

The Fibonacci ratios are the key levels where you can expect the price to retrace. Thus, Fibonacci ratios are nothing more than support and resistance levels. They work because these levels are watched by a large number of traders.

Fibonacci levels can be combined with any trading strategy. For example, if you use a moving average, you can apply Fibonacci levels to measure the length of a rally and then wait for the moving averages to confirm the bullish or bearish trend when the price makes a pullback.

Of course, using Fibonacci levels requires a bit of discretion. For example, the points you choose to measure the Fibonacci level can vary from one trader to another. Likewise, some traders use only the opening and closing prices, while others use the high and low prices.

Remember that Fibonacci levels are an exact science.

The Fibonacci retracement tool – MT4

The MetaTrader 4 (MT4) trading platform, as well as just about any other trading or charting platform, has the Fibonacci measurement tool. You can access this from MT4’s main menu: Insert > Fibonacci > Retracement.

There are many other Fibonacci tools; such as the Fibonacci spiral, Fibonacci arcs, and so on. But among all these tools, the retracement tool is the most widely used. In MT4 and most other charting platforms, you can also adjust the levels.

In this example, we only apply 0.618, 1.618 (which is the extension), and 0.382. You can adjust further values by double-clicking on the Fibonacci tool and entering the values yourself. An example of this is shown in figure 2 below.

How to draw Fibonacci levels

The first step is to identify a strong movement in the market. This could be a strong rally or a strong decline. Now, starting in the opposite direction to this strong movement, click on the starting point of this rally (could be a high or low) and drag the Fibonacci tool to the end point.

A quick way to see if you’ve plotted the Fibonacci tool correctly is to simply look at the 0 and 100 values. When the Fibonacci levels are plotted, you’ll see the retracement level 0.382 followed by 0.618.

Figure 3 illustrates an example of how to draw the Fibonacci tool.

How to trade with Fibonacci levels

Now that the Fibonacci levels are in place, the next step is to expect a reversal either at the 0.618 or 0.382 Fibonacci ratio levels. These are nothing but supports and resistances. In an uptrend, when you measure the Fibonacci ratios (as shown in figure 3 for example), the 0.618 and 0.382 (and other Fibonacci ratios) are potential support levels.

Conversely, when you measure a downtrend using Fibonacci ratios, the levels of 0.618, 0.382 etc. become potential resistance levels.

Depending on the price action at these levels (or based on signals from other technical indicators) you can expect prices to reverse (or in some cases break these levels and change direction).

In most cases, when the price retraces to 0.618 or 0.382, you can expect it to then rally towards 1.618, which is known as the Fibonacci extension level.

This principle is widely used as a trading strategy in itself as traders typically buy or sell near the Fibonacci retracement level and take profit near the Fibonacci extension level.

In the above example in figure 3, a long position would have been opened at either 0.382 or 0.618 (deep or shallow retracement) with a Take Profit set at the 1.618 extension level.

Some traders also make use of the 50% retracement level, while others prefer to round off the Fibonacci ratios to 0.40%, 0.62% and so on. It doesn’t make much of a difference; just as one trader may use highs and lows while another trader might use the opening and closing prices.

Fibonacci ratios can be applied to any market and any timeframe as long as there is a strong movement in the market. One of the most important aspects of successful trading with Fibonacci levels is to have patience and wait for a pivot high and low to be formed.

Figure 4 shows the Fibonacci ratios applied to a daily chart for Cisco Systems (CSCO).

In the above example, you can see where the high and low points were taken from and the subsequent retracement to the 38.2% Fibonacci level.

Most traders tend to plot Fibonacci levels as the price evolves. However, a trader must wait for a few sessions until the retracement is in the early stages. Another important thing to bear in mind is that just because the price retraces to a Fibonacci level, there is no guarantee that the price will continue in the direction of the trend.

There are many instances when the price bounces off the 61.8% retracement but the subsequent rally fails, with the price eventually changing trend and thus, its direction.

In conclusion, Fibonacci ratios might seem mystical but they are nothing but support and resistance levels that are widely watched by traders. The popularity of Fibonacci levels makes them a self-fulfilling prophecy; as large buy and sell orders are placed at these levels.

The fact that Fibonacci levels represent potential areas of support and resistance makes them a unique choice for trend traders.

Скачать индикатор Фибоначчи – разные варианты для разметки уровней (с сигналами)

Оглавление. Жми для простмотра

Базовые инструменты разметки графика группы Фибоначчи уже встроены в терминал МетаТрейдер. Однако их функционал минимален, а определение экстремумов, по которым будет производиться расчет, осуществляется вручную. Такое неудобство послужило стимулом для разработки индикатора Фибоначчи, работающего в автоматическом режиме.

p, blockquote 1,0,0,0,0 –>

Индикатор уровней Фибоначчи ICWR_a

Его создатель J. Lotoski. Разработан этот индикатор для трейдеров, торгующих по стратегиям, использующим динамические Фибо-уровни (т. е. такие, которые нужно перестраивать при каждом обновлении последних экстремумов). На графике, помимо собственно уровней Фибоначчи, рисуется и ломаная линия ЗигЗага, переломы которой указывают на экстремумы (красная на рис. 1).

p, blockquote 2,0,0,0,0 –>

p, blockquote 3,0,0,0,0 –>

Лучший брокер

p, blockquote 4,0,0,0,0 –> Рисунок 1. Индикатор Фибоначчи ICWR_a.

Для расчета Фибо-уровней используется последний отрезок ЗигЗага. Это позволяет отслеживать положение коррекционных зон на основном тренде. Сами уровни Фибоначчи рисуются стандартным желтым цветом.

p, blockquote 5,0,1,0,0 –>

На рис. 2 продемонстрированы Фибо-уровни, построенные ICWR_a спустя два звена ZigZag. Несложно заметить, что котировка довольно точно двигается между рисуемыми уровнями в горизонтальном канале. Поэтому канальные торговые стратегии – один из вариантов применения этого индикатора.

p, blockquote 6,0,0,0,0 –> Рисунок 3. Особенность индикатора Фибоначчи ICWR_a.

Индикатор Фибоначчи QuickFib

Его разработчик Дж. Хупер. Поиск экстремумов происходит по не настраиваемому алгоритму ZigZag. Ищутся глобальные экстремумы в видимой части графика. Поэтому по мере обновления котировок регулярно происходит пересчет фибо-уровней (красные горизонтальные пунктиры на рис. 4). А еще эти экстремумы (значение котировки в них показано в прямоугольных рамках – красной для максимума и зеленой для минимума) используются для построения двух трендовых линий – поддержки и сопротивления (красные прямые на рис. 4).

p, blockquote 7,0,0,0,0 –> Рисунок 4. Quick_Fib – индикатор Фибоначчи.

Левый край желтоватого прямоугольника указывает на вероятный следующий ориентировочный экстремум. При этом, если последним был зафиксирован минимум, то в качестве следующего ориентировочного ищется максимум, и наоборот. Если эта функция не требуется, то можно в настройках задать false переменной DrawRetracementBlocks – это сделает прямоугольник прозрачным.

p, blockquote 8,0,0,0,0 –>

Удобно торговать с QuickFib и на боковике и на тренде. В первом случае надо рассчитывать на отбой от нижних уровней вверх, а от верхних – вниз (поэтому в канале прямоугольник можно отключить). А вот во втором следует ожидать коррекций, после которых продолжится прежний тренд. Вот в этом случае и пригодится прямоугольник – его появление является сигналом формирования коррекции.

p, blockquote 9,0,0,0,0 –>

Индикатор Фибоначчи с сигналом

Нетрудно догадаться, что эффективность фибо-уровней сделала индикаторы для их разметки популярными, а также повлияла на появление модифицированных версий. Например, появилась сигнальная версия HorizontalChannelAlertWithFibo, ориентированная на применение в канальных стратегиях, в которых обеспечивает определение целей при отбоях (рис. 5). Дополнительно обеспечивается сигнализация пробоев уровней, в том числе граничных, что делает этот индикатор Фибоначчи полезным и при трейдинге пробоев каналов.

p, blockquote 10,1,0,0,0 –> Рисунок 5. Разметка индикатором Фибоначчи с сигналом HorizontalChannel_AlertWithFibo.

В настройках Horizontal Channel Alert With Fibo можно:

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  • активировать/деактивировать сигнал о пересечении определенных уровней;
  • определить визуализацию графической разметки;
  • задать режим переноса разметки между таймфреймами.
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