What is the Auto Fibo Phenomenon Indicator?
The Auto Fibo Phenomenon indicator is an advanced charting tool that is based on the Fibonacci levels. This indicator helps users determine the best points of entry into a market. It also provides users with both stop loss and take profit levels for additional safety.
The Auto Fibo Phenomenon indicator has to be uploaded onto the MT4 platform as it does not come built-in. The indicator also provides notification alerts when it is the right time to enter the market, so you don’t have to be on the market waiting for the right time all day.
How to Trade the Auto Fibo Phenomenon Indicator
The auto fibo phenomenon indicator is one of the easiest tools for beginners since it provides you with all the values you can consider for a trade. This indicator will provide you with signals in the form of lines. A buy and sell signal will be written under a red line that signifies the value at which to buy or sell your position. A stop loss will also be shown with a red line.
Similarly, the auto fibo phenomenon indicator will tell you an optional time to take profit through a green line. It may provide you with more than one take profit positions, depending on the market. It is important to note that the indicator has a technical error where it does not show the buy signal line clearly. Nonetheless, traders can often understand what it is trying to show.
Buy Signal
In the chart below, you can see what the auto fibo phenomenon indicator looks like when it gives out a buy signal. While the buy entry is not clearly visible through the line on the chart, you can see the value on the top-left of the chart to understand what it was trying to say. There is also a stop loss position under the buy entry, and three take profit positions above the entry. These values are based on the Fibonacci retracement values.
Sell Signal
In the chart below, you can see what the auto fibo phenomenon indicator looks like when it gives out a sell signal. The sell entry is visible through the red horizontal line, but you can also see its value on the top-left of the chart. There is also a stop loss position under the sell entry, and two take profit positions above the entry.
Auto Fibo Phenomenon Indicator Pros & Cons
The auto fibo phenomenon indicator is a useful tool when applied correctly but not the holy grail. Here are its pros and cons:
Pros
- Easy to understand by beginners
- Provides all position values
- Chart is easy to read
Cons
- Difficult to read on longer timeframes
- Not built-in on the MT4 platform
- Buy entry line is not visible
Conclusion
The Auto Fibo Phenomenon indicator is one of the easiest charting tools for beginners. Although the buy entry line is not visible, traders can still read the value on the top-left corner. The tools provides all the entry, stop loss, and take profit values to complete a trade. However, we still recommend testing it out first in a demo account before incorporating it into your trading.
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