The free Fibonacci Pivots Forex indicator for Metatrader 4 plots the pivot point + all Fib S1, S2, S3 support & R1, R2, R3 resistance levels on the chart.
The indicator appears in the main MT4 chart window.
The following information will be displayed on the chart:
- Pivot Point (blue horizontal line)
- Fibonacci S1, S2, and S2 levels (red support lines)
- Fibonacci R1, R,2 and R3 levels (green resistance lines)
All colors can be fully modified from the indicator’s inputs menu and color settings.
Classic buy and sell trade example with pivot points:
- A buy signal occurs as soon asthe price closes above the pivot point (bullish).
- A sell signal occurs as soon as the price closes below the pivot point (bearish).
- Take profit at the Fibonacci support (sell trade) and resistance levels (buy trade).
The Fibonacci Pivots indicator can be used for both entry and exit signals or to confirm buy & sell trade setups issued by your favorite trading systems or strategies.
The indicator works equally well on all assets (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..) and shows promising results if used correctly.
Free Download
Download the “Fibonacci Pivots.ex4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Fibonacci Pivots mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Fibonacci Pivots Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Fibonacci + Pivots
Does it repaint? No.
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.
Example Case Studies
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.
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Download the “Fibonacci Pivots.ex4” indicator for Metatrader 4
