The Fibonacci Bands forex technical indicator for MT4 represents a special version of the Fibonacci trading indicator.
It draws a set of support/resistance Fibonacci bands on the Metatrader 4 chart.
Fibonacci bands positioned above the blue center line represents resistance bands while bands positioned below support bands.
Trading the Fibonacci Bands are very similar to trading Bollinger Bands.
Look for long trade opportunities when the slope of the Fibonacci Bands bands are pointing to the upside.
Look for short trade opportunities when the slope of the Fibonacci Bands bands are pointing to the downside.
For long trades: execute trades when price is trading below the center line and place stop-loss below the lower thick LightSeaGreen support Fibonacci line.
For short trades: execute trades when price is trading above the center line and place stop-loss above the upper thick LightSeaGreen resistance Fibonacci line.
The EUR/USD 1-Hour chart below displays the Fibonacci Bands Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Fibonacci Bands MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade when price trades below the center line and the Fibonacci bands are sloping up. Confirm the buy trade with other technical indicators or with price action techniques.
Sell Signal: Open sell trade when price trades above the center line and the Fibonacci bands are sloping down. Confirm the sell trade with other technical indicators or with price action techniques.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Bands period, Periods ATR) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Fibonacci bands
Copy and paste the bands-fibo-true.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)