The Fibonacci indicator looks for the last significant momentum in a given period and draws the Fibonacci levels on the chart, taking into account the direction of movement, and you can use this indicator to enter the market on a correction or breakout. The indicator uses a unique algorithm for finding the direction of movement, decomposing the price into wave movements.
The levels are drawn in a non-standard way. When an asset grows, the lower point is taken for 100%, and the upper point for 0%, so it is more convenient to consider the correction from the maximum in growth. To set the profit, negative values from the point 0 are used.
You can use the 0.100 and 38 levels as important levels for trading, we use the 38% level for entry. In the settings, you can change this level for example to 50 or any other.
This method of construction is actively used in trading on stocks and cryptocurrencies, but the method can be applied to the currency and futures markets (futures and CFDs).
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We conduct public stock trading using the method used in this indicator
An Expert Advisor has been created that trades on this indicator FiboTrader Lite
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A market scanner has been created that searches for signals from the list of instruments from Market Watch based on this indicator