This auto-Fibonacci fan indicator is an MT4 indicator that utilizes Fibonacci ratios to create levels of resistance and support. The indicator employs Fibonacci ratios of 23.6 percent, 38.2%, 50 percent, 61.8%, and 80.9 percentages for its calculations. The indicator transforms the ratios into five lines.
The indicator draws lines starting from the low or high point and determines which direction the trend is heading in. It automatically draws red and blue lines to identify the direction of trends, either bearish or bullish, to allow traders to decide on their positions based on these trends. While the indicator is most effective on any timeframe, traders should make use of longer timeframes to avoid the possibility of false signals.
Auto Fibonacci Fan Indicator Buy/Sell Signals
To discern the signals for buy and sell, traders must find the lines. The indicator draws red and blue lines to show the market’s developments. These lines serve as resistance and support. If the indicator shows red lines, that indicates a downtrend, and traders must either short or close long positions.
In contrast, if the indicator displays blue lines in the direction of upwards, it’s a signal, which means traders have to take long or short positions. The traders can also use the indicator in conjunction with other indicators, such as those of RSI or MACD, for additional confirmation of signals.
Conclusion
Its auto-Fibonacci fan indicator uses Fibonacci ratios to draw five levels on the chart. With the levels drawn, investors are able to determine which direction the market is heading in. You can also obtain the Auto-Fibonacci Fan Indicator for free on our website.
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