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Automatic Fibonacci Retracement Indicator
Fibonacci Retracements are a very popular technical analysis approach to studying price action in the forex markets. Based on the Fibonacci sequence by Italian mathematician Leonardo Fibonacci. The main theory behind Fibonacci Retracements is that prices often retrace their steps after a large move in one direction. The Fibonacci ratios are then used by traders as key trading levels of the price retracement.
Some Common Fibonacci Retracement Trading Uses Include:
- Support & Resistance Levels
- Stop Loss & Take Profit Levels
- Price Reversal Areas
- Swing High & Low Levels
The standard Fibonacci Retracement indicator in the Metatrader 4 platform is static. Traders have to determine the trend, draw the indicator and update the chart when trends change. This indicator was designed to do all that for you automatically – Automatic trend determination, plotted Fibonacci levels and updated retracements when there is new high or low levels of price action.