Auto Fibonacci Retracement Indicator

A valuable asset in technical analysis is the Fibonacci retracement tool. Don't fret if you are unfamiliar with it. It's based on the Fibonacci sequence, which includes numbers like 0, 1, 1, 2, 3, 5, 8, 13, etc. When you divide Fibonacci numbers by those next to them, you create Fibonacci ratios. These ratios are then used on the price chart with the Fibonacci retracement tool.

To utilize this tool manually, traders first must find the chart’s highest and lowest points before applying the retracement levels. Nevertheless, this procedure can be tricky and mistakes can happen, particularly for people unfamiliar with Fibonacci analysis. Luckily, the Auto Fibonacci Retracement Indicator for MT4 makes things easier, since it automatically identifies the high and low points and plots Fibonacci levels on the chart—eliminating the need to set it up by hand.

Super cool Forex indicator is here!!

Key Features:

• Profitability up to 500% per year
• Minimum deposit to start: $100 or more
• Timeframe for trading: M15
• Trading time: 24 hours a day
• Assets for trading: Any

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And the best aspect? The Auto Fibonacci Indicator works on all timeframes and currency pairs, which makes it a versatile tool for any trader.

How the Auto Fibonacci Retracement Indicator Functions

The Auto Fibonacci Indicator plots retracement levels from 0% to 100%.

• In a downtrend, the 0% level shows up at the top and the 100% at the bottom.
• In an uptrend, the 0% level is placed at the bottom and the 100% at the top.

When the market hits a new high, it often retracts to various Fibonacci retracement levels before continuing.

For example, if an upward trend is anticipated to retrace to the 38.2% Fibonacci level, traders should wait for the market to go back to this level prior to initiating a buy trade. The stop-loss can be placed under the swing low or the 50% Fibonacci level. For exiting the trade, a take-profit order can be set at the next high or resistance level.

Key Fibonacci Retracement Levels

• The 50% Fibonacci level is frequently tested prior to the price continuing its trend.
• The 61.8% level is favored by traders, as it provides a deep pullback.
• The 78.6% level is another strong reversal point but is commonly overlooked.

Fibonacci as a Take-Profit Strategy

Besides trading pullbacks, Fibonacci retracement levels can be utilized as take-profit targets when following a trend.

For instance, if an uptrend retraces, traders could decide to sell with a take-profit target at the 61.8% level, guaranteeing profits from the correction stage.