Do you use Fibonacci ratios in your technical analysis? If so, this article is for you. I recently wrote an article about how to use Fibonacci retracement and extension levels. I personally prefer to use the manual Fibonacci retracement tool in MT4. The reason I prefer the default tool is that most auto Fibonacci indicators for MT4 are not accurate. They do not usually choose the correct highs and lows for drawing the retracements or extensions.
However, after much searching, I finally found an auto Fibonacci indicator for MT4 that works most of the time. In the image below, you can see an example of it in action. This indicator displays the Fibonacci retracement and extension of the most recent swing in price. It also displays the price of each respective level. As you can see from the example, this indicator obviously has a simple, clean design.
However, the thing that really separates this indicator from the others is the ability to adjust the look back period. On a few occasions, it was necessary to increase the value to 30 or even 40 in order for the measurements to be done off of the correct highs and lows. The ability to adjust the look back period makes this the most accurate auto Fibonacci indicator for MT4 that I have used. However, this may come in handy if you want the indicator to continue to display the same measurement as price leaves the retracement area and heads into the extension area by default it would adjust the measurement.
Using Fibonacci retracement and extension levels can help you qualify better trades and choose better take profit levels. They can work in conjunction with just about any trading system , which is one reason Fibonacci trading is so popular. They will thank you. Still looking for a profitable trading system?
Only 3 were profitable! Learn more about my 1 recommended trading system, Day Trading Forex Live. This indicator updates candle by candle, so it will eventually adjust to the most recent swing. Are you asking if this indicator will show you the Fibonacci levels from a different time frame? It can only work off of the current time frame you are viewing.
Thanks for the comment. There is no best setting, but the default lookback setting of 24 often works just fine. See my article on the Fibonacci retracement and extension basics to learn more about how to properly use Fibonacci levels. That variable simply tells the indicator how far to look back in order to draw the Fib levels. If you make the number too large, the indicator may draw the Fib levels off of a swing too far in the past.
If you make the number too small, the indicator may incorrectly draw levels based on only part of the current swing. One shortcut is to take the measuring tool in MT4 the one you use to measure pips , start from the last candle on the right of the chart and measure back to the swing high or low that you want the indicator to draw off of. Since the measurement tool also measures candlesticks you will get the exact number.
This indicator works off of the number of candlesticks. This indicator will not do the work full time for you. That test is going to take longer than the others did, though. I estimate it will take 6 or 7 months to complete. In other words, on one side of the 0 level is the retracement, and on the other side is the extension. The levels are the same, as you pointed out.
I can see how combining these could be confusing. It would also be confusing to some traders who intend to take their first take profit, for instance, at the Instead they see a If it bothers you too much, you can just edit the code. Thanks for the comment, Mimi.
I knew some of you would appreciate it. Thanks alot Chris I find this indicator really using, wish I had it sooner, I am more pipful now, thanks alot. Typically, longer time frames are stronger. However, which time frames will work best for you depends on which time frames you will be able to consistently trade and which ones provide you with enough trades to let your edge play out.
This is the most common question asked on this site. There is no one answer that will work best for everyone. For me, the daily chart consistently provides me with the strongest signals. However, if I only traded the daily chart, I would not get enough trades to meet my trading goals. That system has worked out very well for me for many different reasons. Like I said, it really depends on what you can trade consistently and what works best with your system.
Hello Chris, This is the best fibo indicator I have seen. I wanted to customize it a little, if its ok with you, I wanted to change the colors of the individual levels for easier viewing.
I decided to share it with you guys because it was the best Fibonacci indicator that I had found, and I knew you guys would find it useful. Seems to only work on the monthly chart when I use these pairs. Notify me of followup comments via e-mail. You can also subscribe without commenting. Does this indicator repaint for next day? Chris November 29, Candle black December 6, Can i use this for 1m candle in 60 second minute expiry? Chris December 8, Chris January 11, Hello nweke, Thanks for the comment.
Chris January 12, Tom February 8, Can you please keep doing the trade test. I was a huge fan of that series. Chris February 8, Chris February 25, Mimi May 14, Chris May 14, Patrick July 30, Thanks for sharing and keep up the good work. Chris July 31, Thanks for visiting the site and for the kind words. Nobantu Makhubela October 16, Chris October 16, I love to hear that. Chris October 22, Chris October 27, Joe November 5, Chris November 8, Charles G November 13, Chris November 14, Van November 23, Thanks alot Chris, i really like this indicator.
Nicely, tks so much!!! Chris November 27, Add Comment Cancel reply Notify me of followup comments via e-mail.More...