Fibo Vector is a free Metatrader 4 indicator that displays the Fibonacci Vector price action trading algorithm on the activity chart.
The indicator appears in the main MT4 chart window as Fibonacci vector-based lines with an upper and lower boundary.
The Fibo Vector indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors, and exotic) and shows promising results if used correctly.
Free Download
Download the “Fibo-Vector.ex4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Fibo Vector 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 Fibo Vector 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
Does the indicator repaint? No.
Fibo Vector + Simpler Trend MT4 Forex Scalping Strategy
Introduction
This scalping strategy combines the Fibo Vector Indicator with the Simpler Trend Indicator on MT4.
The Fibo Vector measures momentum: bullish above 8.8 and bearish below 5.3.
Simpler Trend provides early candlestick trend confirmation; green candlesticks are bullish, while red candlesticks are bearish.
This strategy works well for M1–M5 scalping on major currency pairs.
Setup
- Apply the Fibo Vector Indicator to your MT4 chart.
- Apply the Simpler Trend Indicator below the price chart.
- Trade major pairs like EUR/USD, GBP/USD, or USD/CHF for tight spreads.
- Focus on the London and New York session hours for the best volatility.
Buy Entry Rules
- Fibo Vector value is above 8.8 (bullish momentum).
- Simpler Trend forms its first green candlestick (bullish confirmation).
- Enter a buy trade at the close of the confirming candlestick.
- Stop loss: a few pips below the recent swing low.
- Take profit: next resistance level or 10–20 pips on M1–M5 charts.
- Exit early if the Fibo Vector drops below 4.5 or the Simpler Trend shows a red candlestick.
Sell Entry Rules
- Fibo Vector value is below 5.3 (bearish momentum).
- Simpler Trend forms its first red candlestick (bearish confirmation).
- Enter a sell trade at the close of the confirming candlestick.
- Stop loss: a few pips above the recent swing high.
- Take profit: next support level or 10–20 pips on M1–M5 charts.
- Exit early if the Fibo Vector rises above 4.5 or the Simpler Trend shows a green candlestick.
Advantages
- Clear momentum thresholds simplify entries and exits.
- Dual confirmation reduces false scalping signals.
- Works well on M1–M5 charts for quick profits.
- The strategy is easy to follow for beginners.
Drawbacks
- Small pip targets make spreads and slippage more impactful.
- Choppy markets may trigger false signals.
- Requires active monitoring for intraday scalping.
Example Case 1 — EUR/USD, 1-Minute Chart
Fibo Vector rises above 8.8, and Simpler Trend forms a green candlestick.
Entered buy at 1.1050 with a 5-pip stop loss and 15-pip take profit.
Price moves to 1.1065 within 12 minutes, hitting the target.
Example Case 2 — GBP/USD, 5-Minute Chart
Fibo Vector drops below 5.3, and Simpler Trend forms a red candlestick.
Entered sell at 1.2750 with a 6-pip stop loss and 18-pip take profit.
Price moves to 1.2732 within 25 minutes, achieving the target.
Example Case 3 — USD/CHF, 5-Minute Chart
Fibo Vector rises above 8.8, and Simpler Trend forms a green candlestick.
Entered buy at 0.9270 with a 5-pip stop loss and 15-pip take profit.
Price moves to 0.9285 within 20 minutes, reaching the take profit target.
Strategy Tips
- Only enter trades when both Fibo Vector and Simpler Trend signals align.
- Focus on major pairs for low spreads and better liquidity.
- Adjust stop loss and take profit based on pair volatility.
- Trade during the London and New York sessions for more reliable moves.
- Practice on a demo account before trading live to get familiar with fast scalping entries and exits.
