Dow Theory Swing Trade Type EA Selene] Won a prize at the FXGT trading competition!
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What is Fibonacci Retracement?
Fibonacci retracement is one of the analytical tools of the financial markets. It is widely used to predict price movements in the stock market and foreign exchange market. Its name comes from the medieval Italian mathematician Leonardo Fibonacci. He was the one who introduced the so-called " Fibonacci sequence," a sequence of numbers found in various phenomena in nature.
The Fibonacci retracement is a tool based on this Fibonacci sequence that helps predict "reversals" or "retracements" (price reversals) in price movements. Specifically, it predicts the point at which prices show a certain trend (uptrend or downtrend) and then temporarily reverse that trend and return to their original trend.
The range of return is indicated as a "percentage" and is often used for the 38.2%, 50.0%, and 61.8% of the range in which prices have moved significantly. These values are based on the "golden ratio" associated with the Fibonacci sequence.
usage rules
First, we determine the range within which the price has moved significantly. This is called the "base range. The reference range is the period of time during which prices show an uptrend or downtrend, and a line is drawn connecting its highest and lowest points.
Next, draw a horizontal line at the 23.6 %、38.2％、50.0％、61.8%position of the reference range. These lines indicate "support" or "resistance" lines where prices may reverse. As prices approach these lines, the likelihood of a reversal increases.
Advantages of Fibonacci Retracement used in MT5
Advantages of MT5 and Fibonacci Retracement Combination
MT5 makes it easy to analyze Fibonacci retracements. By utilizing a graphical interface, traders can intuitively grasp each level of retracement without complicated calculations. Furthermore, MT5 updates price data in real time, so analysis can always be based on the latest information.
In addition, if you have linked your account with a brokerage firm such as XM or HFM, you can trade directly with them.
Entry Timing Decision
The 50% and 61.8% retracement levels often serve as support or resistance and can help with entry.
Stop loss setting
You can draw a retracement before initiating a trade and determine the point at which to exit the trade if the price breaks through support or resistance. This facilitates risk management.
Determination of profit point
By applying each level of retracement in reverse, it is possible to predict how much prices will rise or fall and to determine when to take profits.
Fibonacci retracement auto-generating indicator
Image of the use of the automatically generated indicator
The Fibonacci Retracement Auto-Generate Indicator is a tool for efficiently drawing Fibonacci retracements on trading charts. The indicator automatically detects historical highs and lows on the chart and draws Fibonacci retracement lines. This makes analyzing retracement levels over a wide range much easier and faster than setting them up manually, and makes it easier to find entry and exit points for trades.
Effect of auto-generated indicators
Automated vertex rate checks, saving time and effort
It automatically checks rates at the tops on the chart and draws retracement lines. This eliminates the need for traders to manually search for past highs and lows, saving a great deal of time and effort. By reducing the time required for analysis, traders are better able to concentrate on the trade itself, thereby improving their trading efficiency.
Allows regular analysis for a certain period of time (number of bars in the past)
It allows for the analysis of Fibonacci retracements on a regular basis at regular intervals. This allows traders to check retracement levels as market conditions change and flexibly modify their trading strategies. Regular analysis also makes it easier to identify market trends and support and resistance levels, allowing for more reliable trading decisions.
summary
Analysis using the auto-generated Fibonacci retracement indicator is an important means of increasing the accuracy and efficiency of your trading. By automatically identifying historical highs and lows and drawing retracement lines, it is easier to visually identify market trends and important support and resistance levels. This allows you to find more reliable entry and exit points and prevent lost opportunities.
Use multiple indicators in combination!
To improve the accuracy of technical analysis, it is essential to evaluate multiple indicators in combination with each other in a comprehensive manner.
We are expanding our lineup of originally developed indicators on this site so that they can be used immediately,
Please also refer to the other indicator introduction articles.
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Indicators are available free of charge!
This indicator is
Aiming for 100% annual interest! Automated Trading Tool Helios
is distributed free of charge to those who use the automated trading tool "Helios" in their real accounts.
https://smart-trading-strategy.com/selene-dow-theory-based-swing-trading-ea/?lang=en
We will provide you with an indicator and a set of support documents when you contact us through our service desk.
*Indicator-only use is available for a fee. Please contact the service desk for details.
If you want to use MT5, I recommend an overseas brokerage firm!
The secret to successful FX investing with MT5 is to combine it with an international brokerage firm.
Domestic Securities Companies
❌ Few MT5-compliant vendors exist.
❌ There is a risk of additional margin. May incur losses in excess of the amount deposited.
Securities Companies
✅ Many brokerages offer a zero-cut system that allows you to risk no more than the amount of your deposit.
✅ Major foreign brokerages such as HFM and XM are safe to use.
- Ability to trade in a low spread environment
- Take advantage of deposit bonuses to start trading with small amounts
- No deposit and withdrawal problems.
- Stable execution with minimal trade delays
If you use MT5, please consider opening an account at an overseas brokerage firm.
summary
To achieve efficient investment,
structuring and automation
is essential.
We will continue to compile ideas to help you analyze the market environment and provide you with tools that you can use immediately.
Automated trading tools make it possible to automate trades, but the decision of when to start and stop the EA is a personal decision.
In order to use the EA wisely, we hope you will make use of the indicator to help you analyze the market environment.
