Fibonacci Fan Trading System

Fibonacci Fan Trading System combines Moving Averages with Fibonacci and adds Auto Fibonacci level to come up with a strategy which is able to deliver trade signals within the trend directions. These trade signals are demonstrated in a very simple manner so that even a newbie trader can be benefited from this trading system.

Fibonacci Fan Trading System allows you to choose any forex currency pair you like to trade around the market. Furthermore, this trading system fits well with all sorts of timeframe charts within the forex MT4 trading platform,

Fibonacci Fan Trading System Overview

Once you’re done with the installation of the System at the MT4 terminal, your trading chart will appear like the following image:

Fibonacci Fan Trading System Overview

Fibonacci Fan Trading System Anatomy

Fibonacci Fan Trading System Anatomy

  • KG Fibonacci MA V1.2: It is a set of 8 individual Moving Averages combined with KG Fibonacci in order to produce crossover trend signals. Price closing above the KG Fibonacci MA levels means the trend is in the bullish condition and remains below the MA levels to represent the bearish trend of the market. The lowest value KG Fibonacci MA moves the top and the greater value MAs remains at the bottom represents the bullish crossover and an opposite scenario is interpreted as the bearish crossover signal of the market trend.
  • Auto Fibonacci: Auto Fibonacci determines the possible retrace or pullback level of the market. You can use these levels as the horizontal support/resistances and can also use them to define breakout trade opportunities.

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Generally Accepted Use of Fibonacci Fan Trading System

Buy Entry

Fibonacci Fan Trading Buy Entry

  • Price keeps closing above the KG Fibonacci MA V1.2 levels
  • KG Fibonacci MAs produce the bullish crossover signal
  • A bullish bar is plotted right above the current Auto Fibonacci level
  • Buy triggers when the above conditions are met
  • Set stop loss below the current Auto Fibonacci level
  • Exit long/take profit whenever KG Fibonacci MAs produce the bearish crossover signal 

Sell Entry

Fibonacci Fan Trading Sell Entry

  • Price keeps closing below the KG Fibonacci MA V1.2 levels
  • KG Fibonacci MAs produce the bearish crossover signal
  • A bearish bar is plotted right below the current Auto Fibonacci level
  • Sell triggers when the above conditions are met
  • Set stop loss above the current Auto Fibonacci level
  • Exit short/take profit whenever KG Fibonacci MAs produce the bullish crossover signal
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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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