The ZigZag Fibo indicator for Metatrader 5 is designed to identify and plot Fibonacci retracement levels on the price chart using the ZigZag indicator and Fibonacci.
Fibo is the abbreviation for Fibonacci.
The 38.2% Fibonacci retracement level is the most interesting one for identifying optimal entry points in trending currency markets.
How does it work?
- In an uptrend, wait for the price to pullback towards the 38.2% retracement level.
- In a downtrend, wait for the price to rally back towards the 38.2% retracement level.
The following indicator inputs and parameters can be modified: depth, deviation, back step, Fibonacci colors, style, width.
It should work equally well across all time frames and trading instruments (Forex, Gold, Indices, Stocks, etc.).
The ZigZag Fibo Forex indicator is effective as a standalone buy/sell signal tool but it can be seamlessly combined with other technical indicators as well.
To ensure familiarity, it is advisable to test this technical indicator extensively on a demo account before implementing it in live trading.
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zigzag_nk_fibo.mq5 Indicator (MT5)
Chart Example
The following chart shows what the ZigZag Fibo Forex indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The ZigZag Fibo Indicator?
Find a simple trading example below:
Buy Signal
- The Forex market should be trending up.
- Wait for a price pullback towards the 38.2% Fibonacci retracement level.
- Open a buy trade and place a stop loss below the most recent swing support level.
- Exit the buy trade for a risk to reward ratio of 2.0 or better.
Sell Signal
- The Forex market should be trending down.
- Wait for a price rally towards the 38.2% Fibonacci retracement level.
- Open a sell trade and place a stop loss above the most recent swing resistance level.
- Exit the sell trade for a risk to reward ratio of 2.0 or better.
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zigzag_nk_fibo.mq5 Indicator (MT5)
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the zigzag_nk_fibo.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration
