Fibonacci Retracement Assistant Indicator for MT4 Download - Free - [TFlab]

The Fibonacci Retracement Assistant Indicator is one of the Meta Trader 4 series indicators. Fibonacci is one of the most widely used tools in technical analysis that helps traders identify key price reversal points. This tool uses Fibonacci ratios to determine potential support and resistance levels based on the previous price movement. To use this indicator, you first must select two points on the price chart: a high point (High) and a low point (Low). The indicator will then draw lines at Fibonacci ratios between these two points. These lines act as support and resistance levels where the price may reverse.

Indicator Table

The image below shows a chart of the EUR/USD currency pair in a 5-minute timeframe. On the left side of the image, an upward move (AB) has occurred, with its retracement (BC) reaching the 61.8% Fibonacci level and showing a bullish reaction. Thus, the Fibonacci retracement level has effectively acted as support. Additionally, on the right side of the image, a downward move (AB) has occurred, with its retracement (BC) reaching the 78.6% level and showing a bearish reaction. Therefore, the Fibonacci level acted as resistance in this case.

Overview

The Fibonacci Retracement Assistant Indicator is a powerful tool in Technical Analysis that can help traders identify Reversal points and critical Support and Resistance levels. However, it can be combined with other technical analysis tools, such as trend lines, to optimize its use.

Bullish Fibonacci Conditions (Buy Position)

The image below shows the price chart of gold (XAUUSD) in a one-hour timeframe. The retracement (BC) has reached the 61.8% Fibonacci level and coincides with an upward trend line (Bullish Trend line). In this scenario, the 61.8% Fibonacci level has acted as support, creating a favorable opportunity to enter a buy trade. Top of FormBottom of Form

Bearish Fibonacci Conditions (Sell Position)

The price chart of the USD/CHF currency pair in a 5-minute timeframe is shown in the image below. The retracement (BC) has reached the 78.6% Fibonacci level and coincides with a downward trend line. In this scenario, the 78.6% Fibonacci level has acted as resistance, creating a favorable opportunity to enter a sell trade.

Fibonacci Retracement Indicator Settings

• FiboColor: Select your desired color based on the chart background color.

Note: The main level settings for the Fibonacci Assistant Indicator are preset, and no changes are needed.

Summary

Support and resistance levels are among the most critical and influential in market movements and trends. Fibonacci Retracement is one tool whose levels can act as support and resistance in the price. By using Fibonacci ratios in their trading strategy, traders can determine potential support and resistance levels based onprevious price movements.