If you’re looking to elevate your trading game, the FiboBands indicator is definitely worth your attention. This indicator operates on a principle similar to that of Bollinger Bands, but with a twist—it employs the Average True Range (ATR) rather than the standard deviation.
The outer lines of the FiboBands are derived from Fibonacci extensions at levels of 1.618, 2.618, and 4.326. This unique approach gives you a reliable tool not just for pullbacks, but also for capitalizing on breakouts by setting precise targets for price movement.
FiboBands is a versatile charting tool that can serve as a channel indicator for both breakout and pullback strategies. It’s also a handy way to identify strong support and resistance levels, which is crucial for any trader looking to optimize their entries and exits.
To get started with FiboBands, you’ll need to utilize the SmoothAlgorithms.mqh library classes. Make sure to copy these files to your terminal_data_folder\MQL5\Include directory. For a deep dive into how these classes work, check out the article "Averaging Price Series for Intermediate Calculations without Using Additional Buffers".
Fig.1 The FiboBands Indicator
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