The Fibonacci Profit Target Calculator indicator for mt4 (Metatrader 4) calculates and displays profit targets on the chart based on Fibonacci.
The indicator appears in the main MT4 chart window and works for both long and short trades.
The Fibo Profit Target Calculator indicator can be used in multiple ways.
Free Download
Download the “fibocalc_V31.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Fibo Profit Target Calculator MT4 indicator in action.
Fibonacci Profit Target Calculator MT4 Strategy
The Fibonacci Profit Target Calculator MT4 strategy is designed to help traders make precise entries, set reliable stop losses, and define clear take profit targets.
By using Fibonacci levels, this strategy identifies key price zones where the market is likely to reverse or continue.
It is suitable for intraday and swing traders on time frames ranging from 5 minutes to 1 hour, but it can also be applied on daily charts for longer-term positions.
This approach works because it combines the natural rhythm of market retracements with calculated profit targets, giving traders a structured plan for both buy and sell trades.
Buy Entry Rules
- Enter a buy trade at the level indicated by the Fibonacci Profit Target Calculator MT4 Fibonacci entry signal.
- Set the stop loss at the level suggested by the calculator, usually below the most recent swing low.
- Take Profit 1: Use the first take profit target provided by the indicator.
- Take Profit 2: Use the second take profit target provided by the indicator for extended gains.
Sell Entry Rules
- Enter a sell trade at the level indicated by the Fibonacci Profit Target Calculator MT4 Fibonacci entry signal.
- Set the stop loss at the level suggested by the indicator, usually above the most recent swing high.
- Take Profit 1: Use the first take profit target provided by the indicator.
- Take Profit 2: Use the second take profit target provided by the indicator for extended gains.
Advantages
- Provides precise entry levels to reduce guesswork in trading.
- Clear stop loss and take profit targets help manage risk effectively.
- Works across multiple time frames for both short-term and long-term trades.
- Helps traders remain disciplined by following structured targets.
Drawbacks
- Performance may be reduced in extremely volatile or news-driven markets.
- Fibonacci levels do not guarantee reversals, so trades can still hit stop loss.
- Requires proper understanding of trend direction for best results.
Case Studies
Case Study 1: EUR/USD 15-Minute Chart
On the EUR/USD 15-minute chart, the Fibonacci Profit Target Calculator MT4 indicated a buy entry at 1.0912.
The stop loss was set at 1.0895, and Take Profit 1 and Take Profit 2 were 1.0930 and 1.0950, respectively.
The market moved in favor of the trade, hitting Take Profit 1 within 45 minutes and Take Profit 2 the following hour, yielding a total gain of approximately 38 pips.
Case Study 2: GBP/JPY 1-Hour Chart
For GBP/JPY on the 1-hour chart, a sell signal appeared at 168.25.
The stop loss was placed at 168.60. Take Profit 1 was at 167.90, and Take Profit 2 was at 167.50.
The price fell quickly, reaching the first target within 2 hours and the second target later the same day, resulting in a total gain of 75 pips.
This demonstrates the indicator’s effectiveness for both short-term and extended trades.
Strategy Tips
- Always check the trend direction before entering a trade to increase the probability of success.
- Use additional confirmation from price action, such as support/resistance or candlestick patterns.
- Stick to the stop loss and take profit targets; avoid adjusting them impulsively.
- Backtest this strategy on multiple currency pairs to understand performance in different market conditions.
- Combine with other indicators like moving averages for trend confirmation.
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 targets
Does the indicator repaint? No.
