About the Fibonacci Pivots Forex Indicator
The Fibonacci Pivots Forex Indicator for MT4 is a price action tool that automatically plots the pivot point along with all Fibonacci support and resistance levels directly on the chart.
It helps traders identify key market levels for entries, exits, and trend analysis.
Displayed in the main MT4 chart window, the indicator uses color-coded lines to differentiate the pivot point (blue), Fibonacci support levels S1–S3 (red), and resistance levels R1–R3 (green).
All colors can be customized through the indicator’s input settings.
Traders can use this indicator to plan trades more precisely, manage risk effectively, and follow market structure.
Free Download
Download the “Fibonacci Pivots.ex4” indicator for MT4
Key Features
- Automatically plots the pivot point and Fibonacci S1–S3 support & R1–R3 resistance levels
- Displays color-coded lines for easy visual recognition
- Colors are fully customizable via the input menu
- Helps identify key reversal and reaction zones
Indicator Chart
The chart example shows the Fibonacci Pivots Forex Indicator applied to an MT4 price chart.
The blue pivot line represents the session’s market balance, while the red support and green resistance lines mark potential reversal or profit-taking zones.
Price interactions with these levels can guide traders on when to enter or exit trades.
Guide to Trade with the Fibonacci Pivots Indicator
Buy Rules
- Wait for the price to close above the blue pivot point line.
- Confirm bullish momentum by observing consecutive higher closes or bullish candlestick patterns.
- Open a buy trade at the start of the next candle after confirmation.
Sell Rules
- Wait for the price to close below the blue pivot point line.
- Confirm bearish pressure by observing consecutive lower closes or rejection candlesticks.
- Open a sell trade at the opening of the next candle.
Stop Loss Placement
- For buy trades, place the stop loss slightly below the nearest Fibonacci support line.
- For sell trades, place the stop loss slightly above the nearest Fibonacci resistance line.
- Adjust the stop distance based on volatility and timeframe.
Take Profit Targets
- For buy trades, target the Fibonacci resistance levels R1, R2, or R3.
- For sell trades, target the Fibonacci support levels S1, S2, or S3.
- Partial profit-taking at intermediate levels can improve risk management.
- Use trailing stops to secure gains during trending moves.
Practical Trading Tips
- Focus on trades aligned with the dominant trend on higher timeframes.
- Watch for price reaction at pivot and Fibonacci levels for high-probability setups.
- Adjust colors and line thickness for clear visibility according to personal preference.
MT4 Scalping Strategy: Fibonacci Pivots & Zero Lag Moving Average
This scalping strategy combines the Fibonacci Pivots Forex Indicator MT4 and the Zero Lag Moving Average Indicator MT4 to identify high-probability entry points in the forex market.
The Fibonacci Pivots indicator calculates key support and resistance levels based on Fibonacci ratios, while the Zero Lag Moving Average provides a responsive trend-following signal with minimal lag.
Together, they offer a robust framework for short-term trading on lower timeframes, such as the 5-minute or 15-minute charts.
Buy Entry Rules
- Price closes above the central pivot point, indicating bullish sentiment.
- The Zero Lag Moving Average line is below the price, confirming upward momentum.
- Enter a buy position at the market open of the next candle.
- Set stop loss just below the central pivot point.
- Take profit at the first Fibonacci resistance level (R1) or higher, depending on market conditions.
Sell Entry Rules
- Price closes below the central pivot point, indicating bearish sentiment.
- The Zero Lag Moving Average line is above the price, confirming downward momentum.
- Enter a sell position at the market open of the next candle.
- Set stop loss just above the central pivot point.
- Take profit at the first Fibonacci support level (S1) or lower, depending on market conditions.
Advantages
- Provides clear entry and exit signals based on objective criteria.
- Combines Fibonacci levels with trend-following indicators for enhanced accuracy.
- Suitable for short-term trading on lower timeframes, ideal for scalping.
- Zero Lag Moving Average reduces lag, allowing for quicker response to price changes.
Drawbacks
- It may produce false signals during low volatility or sideways market conditions.
- Requires active monitoring and quick execution, which may not suit all traders.
- Not foolproof; risk management is essential to mitigate potential losses.
Case Study 1: AUD/USD 5-Minute Chart
On the AUD/USD 5-minute chart, the price closed above the central pivot point, and the Zero Lag Moving Average was below the price, indicating a bullish trend.
A buy position was entered at the market open of the next candle.
The price quickly moved upward, reaching the first Fibonacci resistance level (R1), where the position was closed for a profit of approximately 22 pips.
Case Study 2: USD/CHF 15-Minute Chart
On the USD/CHF 15-minute chart, the price closed below the central pivot point, and the Zero Lag Moving Average was above the price, confirming a bearish trend.
A sell position was entered at the market open of the next candle.
The price declined, hitting the first Fibonacci support level (S1) for a gain of around 28 pips, demonstrating the effectiveness of this scalping approach on multiple currency pairs.
Strategy Tips
- Use this strategy during periods of high market volatility for better price movement.
- Combine with other indicators or price action techniques for additional confirmation.
- Regularly backtest the strategy to ensure its effectiveness in current market conditions.
- Adjust stop loss and take profit levels based on market volatility and risk tolerance.
Download Now
Download the “Fibonacci Pivots.ex4” indicator for Metatrader 4
FAQ
Can I customize the pivot and Fibonacci line colors?
Yes. All lines can be fully customized through the indicator’s input menu, allowing you to choose colors that suit your chart setup.
How should I use the pivot point in trading?
The pivot point represents the session’s market balance. Closing above it signals bullish momentum, while closing below indicates bearish pressure. Use it as a guide for entries and exits.
Summary
The Fibonacci Pivots Forex Indicator for MT4 provides traders with a structured way to identify key support, resistance, and pivot levels on the chart.
It simplifies decision-making for both entries and exits while improving risk management.
Combined with trend or momentum confirmation tools, this indicator helps traders increase accuracy, manage trades effectively, and confidently plan take-profit targets using Fibonacci levels.
