Have you heard about the Fibo Bars 2? It’s an awesome indicator developed by Ivan Karnilov, and it got me thinking about how we can take it up a notch. Enter Fibo Bars 3, which combines multiple Fibo Bars 2 indicators into one powerful tool!
So, what’s the idea behind it? Well, Fibo Bars 3 uses a larger time frame as a primary trend, while incorporating two smaller periods. When the colors of the two smaller periods align with the color of the larger period, you’re in the green! However, the moment one of those smaller periods flips to a different color, the indicator turns yellow, signaling that the market may be moving against the main trend.
Key Features:
- Period: The larger the set period value, the less reactive the indicator will be.
- Fibo Level: Set your correction levels as follows:
- Level 1: 0.236
- Level 2: 0.382
- Level 3: 0.5
- Level 4: 0.618
- Level 5: 0.762
When you choose a fiboLevel in Fibo Bars 3, it applies uniformly across all Fibo Bars 2 layers, making it super convenient.
To tailor the indicator to your trading style and time frames, start by analyzing the initial Fibo Bars 2, which will serve as your primary trend reference. From there, check the lower Fibo Bars 2 periods to decide what corrections you want to focus on and identify your reversal points.
The settings are highly customizable! If you pair Fibo Bars 3 with oscillators, you can pinpoint even earlier entry points. You can choose to hold a trade until the oscillator signals overbought/oversold conditions, or until that yellow color pops up again on Fibo Bars 3.
If you’ve discovered any cool strategies or examples using this indicator, don’t keep it to yourself! I’d love to hear about them!
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