Fibonacci strategy. Combination of Fibonacci fan and MACD

The Italian mathematician Fibonacci made an invaluable contribution to the development of technical analysis and helped more than one generation of traders achieve success with his tools.

Tools such as Fibonacci lines, arcs, zones, as well as fans are integral parts of many trading strategies. 

The magical effect of these numbers and the processing of signals shatters into smithereens all the statements of traders who use fundamental analysis about the ineffectiveness of technical analysis.

The Fibonacci strategy that we want to offer you today is based on the Fibonacci fan and MACD .

For some reason, the fan is not particularly popular among traders, since some beginners have difficulty constructing this tool, as well as interpreting trading signals.

In fact, building the tool is very simple; for this you will need to find the minimum point (minimum of the trend) and the maximum point of the formed movement and draw a fan through them. However, at this stage it is not necessary to know this, since there are indicators that will do all the work for you automatically.

Generally speaking, to apply this strategy you will need an MT4 terminal, and trading itself can be carried out on any instrument, including metals and CFDs, as well as shares or futures .

Preparing a working Fibonacci strategy chart

As already mentioned, you can apply the Fibonacci fan yourself by applying it through the minimum and maximum. However, to simplify the process of building and preparing for work, I suggest downloading and installing an indicator that builds lines independently, as well as a template, when launched, the desktop will be completely ready for work.

To do this, the tools downloaded below must be installed in your MT4 through the data directory, which you can launch through the file menu in your terminal. Next, you need to install the indicator in the Indicators folder, and the template in the Template folder.

After updating your installed tools, go to the list of your templates and open “Fibonacci Strategy”. If you did everything according to the instructions, the work schedule will change like this:

Types of signals. Briefly about the vehicle

If you have ever come across the study of the Fibonacci fan, then you are probably already familiar with the fact that its main task is to show possible reversal points after a trend correction. Therefore, as a rule, traders trade mainly on the rebound from the fan rays.

However, we should not discount the fact that the fan, when the last ray breaks through, gives us an excellent entry point for a market reversal. That is why, in the Fibbonacci strategy, signals can be divided into two blocks, namely the continuation of the main trend (price rebound from the rays) and the breakdown of the last ray (trend reversal). So, let's start with the second block.

In order to confidently say that the bearish trend has reversed and enter a buy position, the following conditions must be met:

1) The price has broken through the ray of the downward Fibonacci fan with a value of 61.8 from the bottom up.

2) At the moment the price breaks through the beam, the MACD indicator is strictly above the 0 level.

When trading, you should wait until the candle closes and only then enter a position, since MACD is an oscillator and its values ​​are as dynamic as the change in the price itself. As a rule, a breakdown of this line is accompanied by a sharp movement. An example of a trend reversal and a buy position is shown in the picture below:

In order to confidently say that the bullish trend has reversed and enter a buy position, the following conditions must be met:

1) The price has broken through the ray of the ascending Fibonacci fan with a value of 61.8 from top to bottom.

2) At the moment the price breaks through the beam, the MACD indicator is strictly below the 0 level.

When trading, you should wait until the candle closes and only then enter a position, since MACD is an oscillator and its values ​​are as dynamic as the change in the price itself. As a rule, a breakdown of this line is accompanied by a sharp movement. An example of a trend reversal and a buy position is shown in the picture below:

When using a strategy for trading rebound from fan rays, the following conditions must be met for a signal to enter a buy position:

1) On an ascending Fibonacci fan, the price touched the middle beam with a period of 50 or the first outer one with a period of 38.2.

2) The MACD indicator has formed a divergence below the 0 level.

Let us recall that divergence is the divergence of peaks that indicators show with the real price; for example, McD shows a histogram higher for the current movement, although in fact the previous movement was higher. See an example below:

For a signal to enter a sell position, the following conditions must be met:

1) On the downward Fibonacci fan, the price touched the middle ray with a period of 50 or the first extreme ray with a period of 38.2.

2) The MACD indicator has formed a divergence above the 0 level.

An example of a sell entry is shown below:

Money management and setting stop orders.

Despite the two different configurations of using the strategy, namely by trend and by trend change, the number of signals will be small. In order to limit your losses in the event of a losing position, set your stops near the adjacent ray of the Fibonacci fan or at local minimums and maximums.

Remember, proper lot calculation allows you to make profit growth smooth and losses insignificant.

Therefore, try to calculate the lot in such a way that in case of a negative outcome, the loss from one transaction does not exceed 2 percent. Download the necessary tools for the Fibonacci strategy.