Fibonacci Levels (Channels) Indicator

Trading based on Fibo levels is one of the most common forex trading strategies. The levels form price channels that serve as the basis for analyzing and forecasting the situation on the forex market.

Constructing them manually is quite labor-intensive, so a more rational approach would be to use a technical indicator that will perform all the routine work automatically.

All you have to do is analyze the current situation and choose the most suitable trading strategy.

This can be either trading within a channel or trading on a breakout, and a larger number of lines significantly expands the possibilities for analyzing the market situation.

The indicator installation is carried out in standard mode.

After installing this script in the trading terminal and launching it, eight smooth lines appear on the screen, which are located at a distance from the moving average in accordance with the default settings.

Each line has its own color, which improves their visualization and allows for better control of the channel boundaries.

 In this case, several conditional channels appear, the inner one of which is the safer one, and with the intersection of each new line, the probability of a reversal increases.

If desired, you can make the necessary adjustments according to the instructions, which are located in the same archive with this indicator.

In addition, the program has many additional parameters that relate to the moving average itself and allow you to more precisely configure it in accordance with your needs and preferences.

To improve the visual display of information, you are given the opportunity to independently choose the colors of the displayed lines and the font size in which the data is written.

Strategy for using the Fibonacci levels indicator

The script can be used for trading forex strategies based on the use of price movement channels or Fibonacci levels.

The most successful entry points into the market are the places where the trend reverses at support or resistance lines, while it should not be forgotten that less risky trades are opened in the direction of the main trend movement.

When working on short timeframes, we focus on two internal lines, highlighted in white in the figure. As the trading timeframe increases, we gradually expand the channel used.

The Fibonacci indicator is suitable for use on virtually any currency pair and timeframe, and can also be used for technical analysis of the current situation on the Forex market.

Download the Fibo indicator for free.

A ready-made strategy for trading using Fibonacci levels - http://time-forex.com/tehanaliz/urovni-fibo