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.
The PRICE ACTION FIBO CHANNEL does not
redraw and is a convenient tool for determining:
- price benchmarks when trading on flat
scalper strategies (trading on a rebound from the borders into the channel)
- price benchmarks when trading on trend
strategies (trading on the breakdown of the channel boundaries)
Detailed manual on how to use the indicator
Also, the 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. For example, a Take Profit of 400 pips
may be too large for one currency pair and too small for another pair.
Thus, you need to use different Take parameters for different currency pairs
These parameters will help you
determine the PRICE ACTION FIBO CHANNEL indicator, which calculates the width
FIBO-range, using indicators of the volatility of currency pairs ‘ quotes.
In this case, the starting point
for calculating TP and SL will be the width of the FIBO range, which is equal to the average
price wave length for a particular currency pair. At the same time:
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- Take Profit 1 is recommended to
be set 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 set with a size of 1/1 of the width between the extreme opposite lines
of the PRICE ACTION FIBO CHANNEL range.
- Period_Fibo_indicator – indicator period
- Fibo_Method-calculation method
- Fibo_Price – value of the indicator shift
- History_Bars – number of quote history bars to calculate
- Font_Size – the thickness of the graphical display of objects