Introduction to the Fibo Bar Indicator
The previous periods price range can often represent a price swing. It is common to see a scenario wherein the low of the previous period is a swing low and the high of the previous day is its corresponding swing high. In these scenarios traders can use the range of the previous day as a basis for plotting a Fibonacci tool.
The Fibo Bar Indicator is a trading based on the concept of using the previous period’s range as the basis for the Fibonacci levels.
What is the Fibo Bar Indicator?
The Fibo Bar Indicator is a technical analysis trading tool which helps traders identify the Fibonacci levels based on the price swing formed on the prior period.
This indicator several lines which represent the Fibonacci levels from the prior period. For example, if it is preset on the daily period, the indicator would detect the Fibonacci levels based on the previous day. It plots the regular Fibonacci levels in lime green, the Fibonacci levels above 100 in sky blue, and the negative Fibonacci levels in orange.
How the Fibo Bar Indicator Works?
The Fibo Bar Indicator retrieves the high and low of the previous period’s price range based on the high and low of the candle representing the period. For example, if the chosen period is “1 Day”, the indicator would detect the high and low of the prior candle on the daily chart and apply it on the lower timeframes.
The indicator would then plot Fibonacci levels using the high and the low of the previous period’s range as the basis for the Fibonacci 0% and 100% level.
It then extends the levels above 100% and below 0% drawing the sky blue and orange levels.
How to use the Fibo Bar Indicator for MT5
The Fibo Bar Indicator has a few options within its indicator settings which can be modified by the user.
“Last Bar for Fibo” allows users to choose the period in which the Fibonacci levels are based on, whether it is the previous day, week, or month. Users can also select the lower timeframes as a reference.
The “Upper color”, “Main color”, and “Lower color” option allows users to select the color that they prefer the lines to be drawn in for the values above 100%, the regular Fibonacci levels, and the negative values.
“Style lines” allows users to select the type of line the indicator would draw.
“Line width’ allows users to select the thickness of the lines the indicator would draw.
Fibo Bar as a Retracement Tool
At times the Fibo Bar can be used as a retracement tool especially when the high and low of the previous day’s range represents a price swing. Traders can anticipate probable pullbacks and reversals on the Fibonacci levels on these scenarios.
The sample below shows a pullback at 50% Fibonacci level.
Fibo Bar as an Extension Tool
The Fibo Bar levels can also be used as a Fibonacci Extension Tool. These levels may be used as take profit target levels in a pullback trade setup based on a Fibonacci level.
The example below shows a price swing towards 150% Fibonacci level.
This indicator can be an effective Fibonacci tool. However, this works best when the high and low of the previous period is a clear swing high and swing low. This is why traders should still visually confirm if the basis for the Fibonacci levels this indicator plots is valid.
MT5 Indicators – Download Instructions
Fibo Bar Indicator for MT5 is a Metatrader 5 (MT5) indicator and the essence of this technical indicator is to transform the accumulated history data.
Fibo Bar Indicator for MT5 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT5 Strategies
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How to install Fibo Bar Indicator for MT5.mq5 to your MetaTrader 5 Chart?
- Download Fibo Bar Indicator for MT5.mq5
- Copy Fibo Bar Indicator for MT5.mq5 to your Metatrader 5 Directory / experts / indicators /
- Start or restart your Metatrader 5 Client
- Select Chart and Timeframe where you want to test your mt5 indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 5 Client
- Right click on Fibo Bar Indicator for MT5.mq5
- Attach to a chart
- Modify settings or press ok
- Indicator Fibo Bar Indicator for MT5.mq4 is available on your Chart
How to remove Fibo Bar Indicator for MT5.mq5 from your Metatrader 5 Chart?
- Select the Chart where is the Indicator running in your Metatrader 5 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Fibo Bar Indicator for MT5 (Free Download)
Click here below to download: