Fibonacci Ratios have been proven time and time again to be an excellent tool for forex trading. Pivot Point Support and Resistance is also a great tool for trading. In fact, many professional institutional traders use it, due to its objectivity and the fact that it is based on a mathematical formula. The indicator draws Fibonacci levels based on the last bar. When a new bar appears, the levels are redrawn.
Currency Pairs: EURUSD, GBPUSD, EURJPY, GBPJPY, and EURGBP
Trading Session: Any
How to trade with Fibonacci Bar MT5 Forex Trading Indicator?
The entry is pretty much straight forward. The indicator will be telling you straight away. We enter long positions when the price challenges, respects, and bounces off the Intraday Long support level. On the other hand, we make short positions when the price challenges, respects, and bounces off the Intraday Short resistance level.
If we don’t see price doing that at those levels, then we skip that pair and move on to the next one. Yes, they could work the other way around, but this is the straight-up purpose of these lines, so we better use it the way it was intended to be used. No point reinventing the wheel.
Put our Stop Loss right below the signal candle. Why? Because price already respected the Intraday Longline as a support, so we could presume that price wouldn’t be going below that level, and the bottom of the signal candle is below that level.
This is somewhat an aggressive type of Stop Loss, as it has a smaller room for the price to breathe. The advantage though is that the Risk-Reward Ratio will be higher and thus we could set our volumes higher and earn more per pip.
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How to download and install an indicator?
In order to install the indicator on your MT5 platform, you need to follow these steps:
- Click on “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into MT5>Indicator folder of the MetaTrader5 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select “Fibonacci Bar MT5 Forex Trading Indicator” template to apply it on the chart.
Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.
Should you use the Fibonacci Bar indicator on your own at all?
Before you start trading with this indicator, you'll want to read this.
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