ChannelsFIBO V2 is an Auto-Fibo channel forex trading indicator, used to plot the variable retracement level of the price for forecasting the next possible move of the market. Besides defining the support/resistance levels, it also signals for the potential levels of price movements so that you can pre-plan your trade exits.
ChannelsFIBO V2 is a very simple and straightforward indicator and it doesn’t require to have previous trading experiences for mastering it. Besides, this forex tool can be applied to trade all kinds of forex currency pairs in the financial markets.
ChannelsFIBO V2 Overview
Download and install the indicator on your MT4 trading platform. Once you’re done, find your chart like the image below:
ChannelsFIBO V2 Explanation
ChannelsFIBO V2 counts the last 35 price bars within the selected period of timeframes and applies standard deviations for determining the possible retracement levels of the market. The retracement areas range from 61.8% to 200% in both bullish and bearish momentums.
However, this indicator only determines possible areas to enter and exit the trades, not the signals. For trade signals, you may depend on price action or candlestick patterns.
For example, if the price is roaming around the support zone, you might look for a bullish pin bar for going long. Besides, you may add other supportive indicators along with Channels Fibo for smoother results.
ChannelsFIBO V2: Buy Conditions
- Price drops in between -61.8 to -200 level
- A bullish pin bar/candle is plotted at the same time
- Enter long at the break of the respective bullish candle’s high
- Set stop loss below the -200 level
- Exit long/take profit whenever price enters in between 161.8 to 200 level
Also Check: Deals & Discount
ChannelsFIBO V2: Sell Conditions
- Price enters in between 161.8 to 200 level
- A bearish pin bar/candle is plotted at the same time
- Enter short at the break of the respective bearish candle’s low
- Set stop loss above the 200 level
- Exit short/take profit whenever price enters in between -61.8 to -200 level