The Fibonacci MTF Channel forex indicator for Metatrader 4 is a dynamic trading channel which is calculated on the distance between the currency price and the moving average.
In an up trending market, the dynamic Fibonacci MTF channel is rising.
In a down trending market, the dynamic Fibonacci MTF channel is declining.
The indicator consists of 2 entry lines: an Aqua and Magenta colored entry signal line.
Trading the channel is utterly easy to understand:
A valid buy signal occurs when the channel is rising and the price bar crosses back above the Aqua entry line from below.
A valid sell signal occurs when the channel is declining and the price bar crosses back below the Magenta entry line from above.
The outer dotted styled dark orange bands can be used to take profits.
All 4 default Fibonacci levels settings can be changed from the indicator’s inputs menu.
The EUR/USD 1-Hour chart below displays the Fibonacci MTF Channel Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Fibonacci MTF Channel MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy order when the price bar crosses back above the Aqua signal line from below and the Fibonacci MTF Channel is trending up.
Sell Signal: Open sell order when the price bar crosses back below the Magenta signal line from above and the Fibonacci MTF Channel is trending down.
Trade Exit: Take profit at the outer dark orange bands or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (MA period, MA price, Fibo level 1, Fibo level 2, Fibo level 3, Fibo level 4) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend channel
Copy and paste the channelsfibo-mtf.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)