The Auto Fibonacci Trading Zones technical forex indicator for Metatrader 4 draws two interesting trading zones on the activity chart together with the most significant Fibonacci levels .
This indicator makes it easy to spot overbought and oversold trading zones on the chart.
The blue trading zone is considered support. Here, traders look for buy trade opportunities when the overall market trend is upward.
The red trading zone is considered resistance. Here, traders look for sell trade opportunities when the overall market trend is downward.
The trading zones colors can be changed directly from the indicator’s inputs tab.
The EUR/USD 5-Minute chart below displays the Auto Fibonacci Trading Zones Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Auto Fibonacci Trading Zones MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate buy trade when price reaches the blue buy zone and the overall market trend is upward. Use other technical tools to confirm the buy trade.
Sell Signal: Initiate sell trade when price reaches the red sell zone and the overall market trend is downward. Use other technical tools to confirm the sell trade.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Fibonacci period, buy zone color, sell zone color) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the autofibo-trading-zones.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)