Price Action Fibo Channel
PRICE ACTION FIBO CHANNEL is an indicator that calculates price FIBO ranges and places them on the price chart of currency pairs in the form of channels with corresponding FIBO levels.
PRICE ACTION FIBO CHANNEL is non repainting and a convenient tool for determining:
- price reference points when trading using flat scalper strategies (trading on a rebound from the borders within the channel)
- price reference points when trading using trend strategies (trading on the breakdown of the channel borders)
Detailed manual how to use the indicator - https://www.mql5.com/en/blogs/post/721873
Also, PRICE ACTION FIBO CHANNEL is an effective tool for calculating Take Profit and Stop Loss levels.
Each currency pair has completely different dynamics of volatility. A 400 pips of Take Profit for one currency pair may be too large, but for another pair too small. Thus, for different currency pairs, you need to use different Take Profit and Stop Loss parameters.
PRICE ACTION FIBO CHANNEL indicator will help to determine these parameters, because he calculates the width of FIBO-range, using the volatility values of currency pairs quotations.
In this case, the starting point for calculating TP and SL will be the width of FIBO range, which is equal to average length of a price wave for a particular currency pair.
- Take Profit 1 is recommended to be installed with a size of 1/2 of the width between the extreme opposite lines of the PRICE ACTION FIBO CHANNEL range.
- Take Profit 2 is recommended to be installed with a size of 1/1 of the width between the extreme opposite lines of the PRICE ACTION FIBO CHANNEL range.
The manual configuration options of the indicator:
- Period_Fibo_indicator - period of indicator
- Fibo_Method - calculation method
- Fibo_Price - the shift value of the indicator
- History_Bars - number of bars in history for calculation
- Font_Size - thickness of graphical display of objects