Autofibonacci strategy [BrainyTrade]
Fibonacci is a method of analyzing financial markets based on the use of Fibonacci numbers. This method involves using support and resistance levels based on the golden ratio and the Fibonacci sequence to predict future price levels.
A Fibonacci chart for most traders means stretching point A to the very minimum and point B to the very maximum. Often no one can explain why he does this.
Robert Fisher's book, New Fibonacci Trading Techniques, is one of those books that will help you understand the meaning of Fibonacci trading.
Each trend movement is subsequently associated with a correction. Based on my 6 years of trading and observing price movements in the market, I can conclude:
"The probability of correction in trends is more than 70%"
That is, on our side is the percentage of potential development of any movement in a trend.
Now we need to solve several questions:
1) How to determine a trend?
2) How to determine the correction?
3) How to determine the turning point of the correction and entry into the trend?
The indicator determines the correction based on the attenuation of the movement. When the market stops showing strong candles, he finds a second point to plot Fibonacci.
The first point is the result of the deepest correction point after the construction of the previous Fibonacci. That is why most often it will not be built from a visible level.
The indicator is based on a “correction standard”, which is more likely to work after a trend movement. In our case, these are levels 0.618-0.5. to determine potential price reversal zones. If the price rises or declines and reaches this level, you can consider it as a support zone. In this regard, when plotting with the Fibonaccia indicator, we can expect these values from the market.
The turning point of the correction occurs when all conditions are met:
1) Descent to zones 0.618-0.5 level,
2) Exit above level 0.
The tool determines the current trend depending on the previous worked fibonacci.
Every movement in the market is analyzed into impulses and corrections. In this concept, impulses represent directional price movements within the main trend, while corrective waves represent temporary deviations from the main direction of the trend.
The indicator reads all historical data and finds the current Fibonacci structure whose impulse was last found.
Important:
Sometimes fibonacci can be very small in size and that's okay. The indicator needs to read absolutely all movements and build levels there. The only question is: is it necessary to trade such small structures? I don't recommend it. Also, the levels 0.382 and 0.236 have been removed from the indicator, since they are not involved in decision-making and calculations.
Settings:
You can change the color of all elements that the indicator displays on the chart.
Application:
The indicator decides to enter a position strictly below the 0.5 extension level based on the candlestick pattern. You can place a grid of orders between 0.618 and 0.86, since they are the strongest support, and the gold levels 0.786-0.86 are a critical correction.
Closing of positions occurs after going beyond -0.618 and when a new impulse with correction is found. In this case, the Fibonacci is considered “spent” and is removed from the chart.
Gold levels (-0.18, -0.27) are often resistance, when approaching them it is better to be careful with positions
When we go beyond the 1st level, that is, the beginning of the impulse, we understand that the cyclicality of the market is being refracted, changes are occurring in the current price dynamics and we are considering opportunities for opening new positions. It is behind this level that the stop loss for previously acquired positions is located.
Examples:
The long Fibonacci structure implies that the trend is up and the image below is an example of a buy signal.
After some time and going beyond -0.618, the indicator found a new fibonacci and exited the old position, closing it with a market order
The image below shows a Fibonacci short with an entry point to sell the asset. You can notice that it is built in the opposite direction from the long one.
Good luck trader!
A Fibonacci chart for most traders means stretching point A to the very minimum and point B to the very maximum. Often no one can explain why he does this.
Robert Fisher's book, New Fibonacci Trading Techniques, is one of those books that will help you understand the meaning of Fibonacci trading.
Each trend movement is subsequently associated with a correction. Based on my 6 years of trading and observing price movements in the market, I can conclude:
"The probability of correction in trends is more than 70%"
That is, on our side is the percentage of potential development of any movement in a trend.
Now we need to solve several questions:
1) How to determine a trend?
2) How to determine the correction?
3) How to determine the turning point of the correction and entry into the trend?
The indicator determines the correction based on the attenuation of the movement. When the market stops showing strong candles, he finds a second point to plot Fibonacci.
The first point is the result of the deepest correction point after the construction of the previous Fibonacci. That is why most often it will not be built from a visible level.
The indicator is based on a “correction standard”, which is more likely to work after a trend movement. In our case, these are levels 0.618-0.5. to determine potential price reversal zones. If the price rises or declines and reaches this level, you can consider it as a support zone. In this regard, when plotting with the Fibonaccia indicator, we can expect these values from the market.
The turning point of the correction occurs when all conditions are met:
1) Descent to zones 0.618-0.5 level,
2) Exit above level 0.
The tool determines the current trend depending on the previous worked fibonacci.
Every movement in the market is analyzed into impulses and corrections. In this concept, impulses represent directional price movements within the main trend, while corrective waves represent temporary deviations from the main direction of the trend.
The indicator reads all historical data and finds the current Fibonacci structure whose impulse was last found.
Important:
Sometimes fibonacci can be very small in size and that's okay. The indicator needs to read absolutely all movements and build levels there. The only question is: is it necessary to trade such small structures? I don't recommend it. Also, the levels 0.382 and 0.236 have been removed from the indicator, since they are not involved in decision-making and calculations.
Settings:
You can change the color of all elements that the indicator displays on the chart.
Application:
The indicator decides to enter a position strictly below the 0.5 extension level based on the candlestick pattern. You can place a grid of orders between 0.618 and 0.86, since they are the strongest support, and the gold levels 0.786-0.86 are a critical correction.
Closing of positions occurs after going beyond -0.618 and when a new impulse with correction is found. In this case, the Fibonacci is considered “spent” and is removed from the chart.
Gold levels (-0.18, -0.27) are often resistance, when approaching them it is better to be careful with positions
When we go beyond the 1st level, that is, the beginning of the impulse, we understand that the cyclicality of the market is being refracted, changes are occurring in the current price dynamics and we are considering opportunities for opening new positions. It is behind this level that the stop loss for previously acquired positions is located.
Examples:
The long Fibonacci structure implies that the trend is up and the image below is an example of a buy signal.
After some time and going beyond -0.618, the indicator found a new fibonacci and exited the old position, closing it with a market order
The image below shows a Fibonacci short with an entry point to sell the asset. You can notice that it is built in the opposite direction from the long one.
Good luck trader!
版本注释:
Added additional settings. Now you can remove any Fibonacci level or change its color.
Added additional settings. Now you can remove any Fibonacci level or change its color.
版本注释:
Fixed some visualization errors
版本注释:
New conditions have been added for market entry points. Now you can trade from resistance zones (-0.18, -0.27 level)
You can decide for yourself which entry points to use.
版本注释:
Fixing some bugs
版本注释:
Major update
1) Filters have been redone in which the strategy closed open positions. Now open positions last much longer in a trend, and often a strategy can gain several positions in one direction over a long period of time, and fix everything at one moment.
Thus, the RM increases several times and creates fewer unnecessary movements.
2) Added countertrend line (testing)
She is not making any changes to the strategy's decision making at this time. Work is underway to successfully implement it into the trading strategy.
In the future it will serve as another entry point into the market.
3)Added new long/short settings
The classic use of this strategy is a two-way trading method. But there are situations where the trend is so strong that there is no point in displaying scalene fibonacci. Often they only hinder the trader.
Let’s say the upward trend in the chart below is extremely obvious, so only long Fibonacci is selected in the settings.
4)Icons with the names of the levels have been moved to the center for convenience.
Stay tuned for further updates. Good luck!
1) Filters have been redone in which the strategy closed open positions. Now open positions last much longer in a trend, and often a strategy can gain several positions in one direction over a long period of time, and fix everything at one moment.
Thus, the RM increases several times and creates fewer unnecessary movements.
2) Added countertrend line (testing)
She is not making any changes to the strategy's decision making at this time. Work is underway to successfully implement it into the trading strategy.
In the future it will serve as another entry point into the market.
3)Added new long/short settings
The classic use of this strategy is a two-way trading method. But there are situations where the trend is so strong that there is no point in displaying scalene fibonacci. Often they only hinder the trader.
Let’s say the upward trend in the chart below is extremely obvious, so only long Fibonacci is selected in the settings.
4)Icons with the names of the levels have been moved to the center for convenience.
Stay tuned for further updates. Good luck!
版本注释:
Don't forget to check the box which Fibonacci you want to see on the chart depending on the trend. Both checked boxes will activate the standard trading system, as before.
版本注释:
Added a setting to hide the trend line and change its color. Will be hidden by default.
版本注释:
corrections
版本注释:
Added line style settings for Fibonacci and trend lines
版本注释:
Adjustment
版本注释:
New entry points have been added to the trial trend line. You can turn them off along with the trend line
版本注释:
Some bugs have been fixed. Now you can select take profit for 18 and 61 zones.
版本注释:
Some bugs fixed
版本注释:
Сorrections
