Fibonacci Pivot Lines Indicator

Fibonacci Pivot Lines Indicator

Fibonacci pivot lines indicator for MT4 automatically plots support and resistance levels using Fibonacci and pivots.

The Fibonacci pivot lines indicator for MT4 automatically calculates the pivot levels. The indicator plots the support and resistance levels based on the Fibonacci levels of 0.38, 0.62, and 0.99. This is the major difference between this indicator and the other versions of pivot line indicators. As the indicator combines the popular and powerful Fibonacci calculation to the pivots and plots the support and resistance lines.

Forex traders can rely on this indicator to identify the bullish and bearish market conditions and buy and sell accordingly. The indicator is well suited for new and advanced forex traders. New traders can easily identify the three support and resistance lines and use them for stop loss and profit target calculation. Advanced forex traders can use the support and resistance levels and trade with the confluence of other technical indicators.

The indicator automatically calculates the pivot lines and support and resistance lines based on the daily price chart. However, the support and resistance remain the same and are visible in the lower time frame charts. In fact, pivot levels are best suitable for the day as they will be recalculated at the beginning of the day. So, the support and resistance levels work best for all intraday price charts.

Fibonacci Pivot Lines Indicator For MT4 Trade Setup

The above GBPUSD M15 candlestick price charts show the Fibonacci pivot lines indicator for MT4 in action. The indicator automatically calculates and plots the pivot line as Majenta. Moreover, the indicator plots three resistance lines labeled on the chart as FR1, FR2, and FR3 in Green. Similarly, the indicator plots three support lines as FS1, FS2, and FS3 in Red.

If the price is above the pivot level, it indicates a bullish market condition. However, traders should enter a buy trade if the price breaks above the FR1 level or the first resistance line. A stop loss below the pivot level to secure this trade and a profit target at the next resistance level is effective.

Similarly, if the price moves below the pivot level, then we are effectively in a bearish market. But forex traders should wait for the price to move below FS1 for additional confirmation and enter the market with a sell position. As the pivot levels act as good support and resistance it is prudent to place the stop loss and take profit levels around them.

Conclusion
The Fibonacci pivot lines indicator for MT4 is a different method of deriving the support and resistance levels from the pivot point. Though the combination of Fibonacci and Pivots may sound exciting, forex traders should apply price action to confirm the price reversals at the support and resistance levels. Interestingly, the indicator is free to download and install.