AutoFib TradeZones is a price retracement indicator. You can apply it for both swing trading and trend-following trading purposes. It simply eases your everyday hassle on drawing the Fibonacci levels manually. Besides detecting the possible retracement levels, it also highlights potential buy/sell zones for determining the market entries.
AutoFib TradeZones can be applied to trade all kinds of forex currency pairs available in the financial markets. Moreover, you’re free to apply it on any timeframe chart you like within your forex MT4 trading platforms.
AutoFib TradeZones Overview
Once you’re done with the installation of the indicator on the MT4 terminal, your trading chart will appear like the following image
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AutoFib TradeZones Explanation
AutoFib TradeZones marks the highs and lows of the current momentum over the selected period of timeframes and plots the Fibonacci levels on an automatic basis. Retracement levels from 76.4% to 100% are the ideal place to open buy and sell positions for the intraday or daily traders.
If you’re scalping, other retracement levels from 23.6% to 61.8% are a good place to find short-term price movements. These levels can also be used to determine your updated trailing stop levels according to the price actions.
All you need to do is, closely observe the price behavior when it gets closer to any of the Fibo-levels. This indicator implies a very simple method of trading that can be master by traders with any level of experience.
AutoFib TradeZones: Buy Conditions
- Price enters the AutoFib buy zone
- A bullish candle closes right above the 23.6% level
- Buy triggers at the break of the respective bullish candle’s high
- Set stop loss below the low of the previous candle
- Exit long/take profit whenever price hits above the 76.4% level
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AutoFib TradeZones: Sell Conditions
- Price enters the AutoFib sell zone
- A bearish candle closes right below the 23.6% level
- Sell triggers at the break of the respective bearish candle’s low
- Set stop loss above the high of the previous candle
- Exit short/take profit whenever price hits below the 76.4% level