KT Auto Fibonacci Indicator 
MT4/MT5

Modes

• Auto: The Auto Fibo indicator will provide automatic Fibonacci levels based on the chart area.
• Manual: The indicator will draw the Fibonacci levels only one time. After that, you can change the anchor points manually.

Usage of Auto Fibonacci Retracement Indicator

• It helps to predict future profit targets logically.
• Strong reversal possibility when combined with support and resistance levels or trend lines.
• Provides a low-risk entry in the trending market.
• It works great across different time frames.
• Fibonacci Indicator MT4 Download: Download and install the Fibonacci indicator on the MetaTrader 4 platform.

Significance Of Fibonacci In Forex Trading

Have you heard about the Fibonacci sequence being used in Forex trading? A series going on as 0,1,1,2,3,5,8,13,21 etc may look simple enough but has a great significance.

If we look at currency trading, the Fibonacci ratios tell a different story, i.e., 23.6, 38.2, 61.8, and so on.

Have you ever cared to assess the nature of the Fibonacci charts? A closer look at them and you shall notice the strange similarity. The varying peaks in the charts follow the Fibonacci ratios very closely. Even if they are not to the closest dollar or cent, the changes reflect the predominance of the ratios.

So for a change, you know of the following shift in price just by assessing the Fibonacci ratio. On the Fibonacci chart, the limit of the peak is known as the resistance level. The valley point is called the support.

So a great opportunity lies in store for all the brokers who can plan your strategy and predict the value of the subsequent rise or drop by the trend of the economic market.

Practical Fibonacci knowledge of forex trading will allow you to design a robust trading system by following the following instructions:

• Identification of low-risk points at the earliest.
• Cement yourself firmly before any significant transaction occurs.
• Enter strong changeovers only when you are sure of not having to cater to stop losses.
• Allot time for a necessary retracement and then moving on to a new trade.
• Predict the future profit targets logically.
• Try to make losses as low as possible.
• Locate high-probability trades.
• Use the known steps to indicate your growth.
  

The market never follows the linear rule. So you ought to be prepared for any switchover. Be it stocks, forex, or futures, prices may leap ahead or retrace back in leaps and bounds.

The strange aspect is the proximity to the Fibonacci ratio value. The application of Fibonacci to forex trading is very complex. You may not succeed at the first attempt, but even professionals end up long-faced in this assumption.

You must be aware not to accept a market turn at a Fibonacci level blindly. It may change in the blink of an eye. Always be open to surprises. Stick to your technical analysis to evaluate the level where the Fibonacci series might take your next forex trade occurrence.

Using Fibonacci to set ‘take profit’ and ‘stop-loss’ levels

The Fibonacci levels are also critical when establishing the levels where you can exit a trade. It helps to maximize your profits and minimize your downside exposure on a trade.

There are several ways to establish the take-profit and stop-loss levels. However, setting these levels in the most straightforward and uncomplicated way is to use the next Fibonacci level. 

If you execute a long trade at the 38.2% level, you can set your take profit at 23.6% and stop loss at 50%.

Similarly, if you execute a short trade at the 38.2% level, your take profit level will be set at the 50% mark and the stop loss set at the 23.6% level.

However, for most Fibonacci traders, stop-loss trailing can efficiently set the stop-loss levels. Moreover, since the trailing stop order is dynamic, it ensures that you are exposed to the price movement's upsides for as long as possible, thus maximizing the profits of your trading strategy.

Inputs of Auto Fibonacci Indicator MT5 | MT4

• Auto Fib: The indicator draws the Fibonacci retracement levels without human intervention.
• Manual: The indicator draws the Fibonacci retracement levels only one time. After that, you can stretch the anchor points manually.
• Show Unretraced Area: Show/hide the area on the chart still untouched by the price retracement.
• The rest of the inputs are self-explanatory.

Applications and Benefits

• Auto Fibonacci Indicator MT4 Download: Easily download the automated Fibonacci indicator for the MT4 platform.
• Automated Fibonacci Trading: Implement Fibonacci-based strategies automatically, saving time and effort.
• Smart Fibonacci Indicator: Utilizes advanced algorithms for accurate Fibonacci retracement levels.
• Commodity Channel Index: Use in conjunction with the Fibonacci indicator for confirming reversal points in trading.