Fibonacci True Bands MT4 Forex Indicator That Works
The Fibonacci True Bands indicator consists of 7 dynamic bands wrapped around price.
Many traders use this indicator for scalping currency pairs multiple times a day during the London and US trading sessions.
How to interpret this indicator?
The blue dotted middle band acts as the bull/bear trend bias.
- Price above the middle band represents a bullish trend.
- Price below the middle bands represents a bearish trend.
There are various profitable ways you can deploy the Fibonacci True Bands indicator to trade currency pairs.
For example, you can use the slope of the bands to open buy and sell trade positions quickly.
This indicator works for scalping, day trading and swing trading.
Feel free to explore the Fibonacci True Bands indicator’s different parameters and settings to create your own personalized indicator setup.
I will explain below how to use it for good daily pips. It’s a very simple trading method, even newbies will understand how it works.
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Fibonacci True Bands Forex Indicator Chart
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
Attach the indicator to any currency pair and time frame of your preference.
Finding Buy and Sell Signals With The Fibonacci True Bands Forex Indicator
Below is an example of how to buy and sell currency pairs with this Forex indicator:
Buy Trigger: Initiate a long trade when price closes above the middle blue dotted band from below. Trend bias is now bullish.
Place a protective stop loss below the lower light green support band, or use your own stop loss placement strategy.
Close the buy trade at the upper light green resistance band, or use your own take profit strategy.
Alternatively, exit the buy trade for a predetermined profit target, for example, close the buy trade for 15 pips on the 1-minute scalping chart.
Sell Trigger: Initiate a short trade when price closes below the middle blue dotted band from above. Trend bias is now bearish.
Place a protective stop loss above the upper light green resistance band, or use your own stop loss placement strategy.
Close the sell trade when price touches the lower light green support band, or use your own take profit strategy.
Alternatively, exit the sell trade for a predetermined profit target, for example, close the sell trade for 30 pips on the 5-minute day trading chart.
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Bands period, bands shift, periods ATR, color, width, style.
The indicator can be used as a stand-alone signals indicator.
It can also be combined with:
- Trading oscillators (MACD, Stochastic, DeMarker,…)
- Price action methods and techniques
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Fibonacci Bands
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.