The Auto Fibonacci Fan Indicator for MT4 uses Fibonacci to create support and resistance levels. Calculations are made using Fibonacci numbers such as 23.6% 38.2% 50% 61.8% and 80.9%. The indicator converts these Fibonacci ratios into five lines.
It detects trend direction by drawing lines starting from the highest or lowest point. It automatically draws red and blue lines to determine whether a trend is bullish or negative so traders can adjust their positions. The indicator works well on all timeframes, but traders should use longer timeframes in order to reduce false signals.
Auto Fibonacci Fan Indicator BUY/SELL signals
To locate the lines, traders need to know where they are. The indicator draws red and blue lines to show market trends. These lines are both resistance and support. When the indicator shows red lines, traders should take short positions or exit their long ones.
Traders can also use the indicator with other indicators like the RSI or MACD to confirm signals. Traders may also combine the indicator with other indicators such as the RSI and MACD to confirm signals.
The conclusion of the article is:
The Auto Fibonacci Fan Indicator draws five levels using Fibonacci Ratios. Traders can determine the direction of a trend by using these levels. You can also download the Auto Fibonacci Fan Indicator from our website for free.