The Trade Channel Fibonacci MT4 forex indicator is a channel trading indicator with Fibonacci retracements levels for trade entry.
The trade channel marks the high and low price for a specified period (thick blue lines) and the Fibonacci levels give a clue where to enter buy or sell trades.
The Fibonacci levels being displayed on the chart: 38.2%, 50.0% and 61.8%.
The market is in an uptrend when the trade channel shows higher highs and higher lows.
In this case, we are looking to buy the pair near the 38.2% Fibonacci level in the uptrend.
The market is in a downtrend when the trade channel show lower highs and lower lows.
In this case, we are looking to sell the pair near the 38.2% Fibonacci level in the downtrend.
The EUR/USD 1-Hour chart below displays the Trade Channel Fibonacci Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Trade Channel Fibonacci MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open buy order when the trade channel is trending up and price retraces back to the 38.2% Fibonacci level (buy on dips). Place a protective stop-loss below the 50% Fibonacci level.
Sell Signal: Open sell order when the trade channel is trending down and price rises back to the 38.2% Fibonacci level (sell on rallies). Place a protective stop-loss above the 50% Fibonacci level.
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 (nLeft, nRight, filter) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: channel | Fibonacci
Copy and paste the trade-channel.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)