Fibo Strong Trading System is a complete trading system based on Fibonacci moving averages, Fibonacci ribbon, Trend Histogram, and pivot levels. Fibonacci sequence is a series of numbers, where a number is found by adding up two numbers before it.
In this trading system, 8 and 21-period moving averages are used which are Fibonacci numbers. Further Ribbon is plotted along with the moving averages is also based on the Fibonacci number. let’s try to understand the working of this trading system with some example
Fibo Strong System Overview
Moving averages are simple and effective tools for trend and momentum determination. If the price is above the fast moving average it means the trend is bullish and momentum is very strong.
If the price is below the fast-moving average that means the trend is bearish and momentum is also very good. Further, if price and both of the moving averages are above the ribbon then traders should look for long trades and if price along with moving averages is trading below the ribbon then traders should look for short trading opportunities.
Fibo Strong System Explanation
Pivot points are an intraday trading tool that is used to define the trend and reversal areas for day trading. Pivot levels are based on high low and close of the previous trading day and provide accurate support and resistance areas.
Pivot levels are used for taking entry and deciding the targets. Trend histogram is used for confirmation in this trading system. If histogram formation is below zero it means bears are in control and if histogram formation is positive it means bulls are winning.
Also Read: Dorsey Inertia Indicator
Fibo Strong: Buy Conditions
- 8 periods moving average should move above 21 periods moving average.
- Both the moving average and price should move above the ribbon.
- Trend histogram should be positive for taking long trades.
- Traders can take entry above the pivot point and resistance levels can be used for profit-booking.
Also Check: Forex Brokers in South Africa
Fibo Strong: Sell conditions
- 8 periods moving average should move below 21 periods moving average.
- Both the moving average and price should move above the ribbon.
- Trend histogram should be positive for taking long trades.
- Traders can take entry above the pivot point and resistance levels can be used for profit-booking.
