M Fibonacci Indicator

M Fibonacci Indicator

M Fibonacci Indicator For MT4 plots pivot lines and three resistance and support levels are based on the Fibonacci ratios. Best for new forex traders.

The M Fibonacci indicator for MT4 automatically calculates the pivot and applies Fibonacci ratios. It draws a pivot level and 3 Resistance and 3 support lines with different colors. The ratios are +/-0.382, +/-0.618 and +/-1.000 for resistance and support respectively. Additionally, traders can plot the pivot lines, support and resistance of any higher time frame in the current chart.

The indicator is simple support and resistance based trading and is suitable for new and advanced forex traders. Moreover, it works on all intraday price charts as well as the daily, weekly and monthly time frames. Additionally, traders can use this indicator for auto trading strategies.

M Fibonacci Indicator For MT4 Trade Setup

The indicator plots three resistances and three supports with a pivot line in different colors. These levels act as effective support and resistance.

So the trading strategy is to follow price action and enter upon the breakout or failure of these lines. Generally, price movement above the pivot line is considered a bullish price trend and below pivot is bearish.

If price is above the pivot and breaks resistance level 1 or R1, traders should enter the markets with a buy trade. It is prudent to place a stop loss below the pivot line and book profits at the next higher resistance line R2 or R3.

Traders can use a similar trading strategy if the price is below the pivot and breaks the support line S1. Alternately, traders can use a higher time frame pivot value to plot in the current chart and use the support and resistance lines to enter and exit.

Conclusion
In summary, the M Fibonacci indicator for MT4 is another version of the pivot indicator. Moreover, the combination of mathematical elements like pivot and Fibonacci number eliminate subjectivity in drawing support and resistance levels.