FibonacciPivot Indicator For MT4
The FibonacciPivot Indicator For MT4 uses the previous day Open, High, Low and Closing prices to calculate Fibonacci based Pivot Points. Green lines depict resistance levels, while Orange lines represent support zones.
Trading ideas with the FibonacciPivot Indicator For MT4
Pivot pint tools or indicators on their own are already great tools to have in your trading because it makes your trading and analysis processes seamless especially when used as support and resistance levels.
Now to have the Fibonacci computation included in the pivot point indicator adds a great deal of integrity to the indicator. The benefit here is that you have these resistance and support levels being drawn for you automatically thus saving you time and allowing to focus on the other important elements in your analysis and actual trading.
The image below shows what the indicator actually looks like when added into the screen:
The image that I have captured here is slightly zoomed in because I wanted you to take a closer look at something of which I will touch on in a few moments. But the thing that I really wanted to point out to you is that you can notice how price action respects these support and resistance levels which are generated using the pivot points indicator.
The pivots point indicator takes into consideration all the main qualities of price data which are the open, close, high, and low price elements. It makes the indicator more reliable in terms of its integrity as a support and resistance resource.
FibonacciPivot Indicator For MT4 - Entries
We shall explore possible entry opportunities so that you know how to identify certain moments to enter the market. Better yet, you could extract some concepts and methods from here to modify your existing trading strategies or even to create your own trading strategy.
Just note that this is all on an idealization level to shed light on the possibilities and potential of the Fibonacci Pivot indicator. However, before I proceed onto that - I would like to just show you an image of the Fibonacci pivot point indicator that reveals to you the Fibonacci confluence in the structure of the lines going across your screen.
The image above shows how I have captured an image with some extra zoom. I did this so that you can see how the Fibonacci ratios actually correspond with the indicator itself.
This gives you an idea of the accuracy of the levels calculated by the indicator. I basically loaded a Fibonacci or retracement tool to the screen and dragged it from one pivot level to the main pivot point in the middle. This image confirms that these levels are indeed valid.
I just wanted to clarify that first before we look at possible ways of going about our analyzing and trading. This tool should not be taken lightly, given the fact that it unburdens us of manually drawing support and resistance levels arbitrarily.
FibonacciPivot Indicator For MT4 - Possible Entries
In the next parts, we will look at a few trading opportunities. First of all, I will start off by drawing extended horizontal lines going across the screen.
These lines are drawn using the horizontal tool which extends the Fibonacci pivot levels on the trading chart. This was done on the four-hour chart but this will not be the chart on which we will place our trades. The image below shows a picture of the horizontal lines going across the screen.
There are a bunch of lines drawn therefore I will go down to the 5-minute chart to look for buying or selling chances. The 5-minute chart will have all these support and resistance nicely spaced out as shown below.
The lines are nicely spaced out therefore we can closely analyze the movement of the price action with respect to the different support and resistance levels. The market has just turned around from a downtrend but at this point, we can clearly see that the market has reached an area of resistance that needs to overcome if we are looking at buying.
But if you check you can see that there is an ascending triangle forming. The support line of the uptrend has upheld its integrity hence why there are so many wicks facing down which indicates a strong rejection of selling.
This hints to us that the market is most likely going to head up. At this point the price will have to dictate to us which way it is most likely to go so we could look at waiting for a breakout. If there is a bullish breakout we will look at buying.
Indeed there was a breakout which occurred as it resulted in a bullish engulfing pattern being formed. These were strong bullish hints to inform our buy trade.
FibonacciPivot Indicator For MT4 - Conclusion
This indicator works wonders if you are looking to trade based on price action analysis - which takes into consideration the following elements - support, resistance, trend lines, candlestick patterns and breakouts.