Overview of the Auto Fibonacci Indicator
The Auto Fibonacci Indicator for MT4 automatically plots Fibonacci retracement levels based on recent price swings. This helps traders identify potential support and resistance zones without having to manually draw the levels each time. It’s a useful tool for traders who rely on Fibonacci analysis as part of their entry or exit strategies.
By referencing recent highs and lows, the indicator dynamically adjusts the retracement levels as price action develops, keeping your chart up-to-date with the latest structure.
How to Use It in Practice
In live trading, you can use the Auto Fibonacci Indicator to:
- Quickly identify retracement zones during trend pullbacks.
- Spot potential reversal levels where price may react.
- Set stop-loss and take-profit levels based on Fibonacci ratios.
- Avoid redrawing Fibonacci levels manually as the indicator updates in real-time.
This indicator is especially useful in trending markets where retracements often align with Fibonacci levels, offering low-risk trade entries.
Parameter Explanations
HighToLow
Determines the direction of the Fibonacci drawing. When set to true, the indicator draws from the highest to lowest price (for a downtrend). If false, it draws from low to high (for an uptrend).
Fibo_Level_1
Sets the first custom Fibonacci level. Often used for 23.6% retracement.
Fibo_Level_2
Defines another custom retracement level, usually for 38.2%.
Fibo_Level_3
Typically the 50% retracement level, which is commonly watched by traders despite not being a “true” Fibonacci number.
Fibo_Level_4
Used for setting the 61.8% retracement, one of the most important Fibonacci levels.
Fibo_Level_5
Another optional level, often set to 76.4% for deep pullbacks.
Fibo_Level_6
Used to display the 88.6% retracement, which some advanced Fibonacci traders monitor.
StartBar
Specifies from which bar the indicator starts scanning for highs and lows. Useful for adjusting the starting point of the Fibonacci swing.
BarsBack
Sets how many bars back the indicator looks to define the recent swing high and low. This helps determine the anchor points for the Fibonacci levels.
Pause
Enables or disables automatic updating of the Fibonacci levels. When set to true, the levels will stop refreshing.
