In this post I will be reviewing the Fibo Quantum indicator which as the name eludes to, is a manual trading indicator based on the principles of Fibonacci. The Fibo Quantum system has a user-friendly visual interface and it uses an advanced next-generation trading algorithm to analyse the current market condition to generate optional forex trading signals. It was created based on the Fibonacci principles and suitable for multiple trading styles. However, I think it certainly requires some additional market analysis and good money management on behalf of the user in order to reach its full potential.
The Fibo Quantum indicator is another forex trading system from the Karl Dittmann whose previous forex software I have reviewed including Super Profit Scalper, Pips Wizard Pro, Forex Enigma, Forex Monarch, Forex Resolut, Exynox Scalper System, Onyx Scalper, Alfa Scalper, DNA Scalper, X Trend Premium, FX Atom Pro, X Scalper, Set Forget Pattern Profit, Rapid Trend Gainer, Infinity Scalper, Forex Equilibrium, Triumph Scalper, Forex Starlight, Forex Spectrum and FX Meta Scalper.
Just like the other software, the Fibo Quantum indicator has been developed for the MetaTrader 4 (MT4) trading platform and will analyse the charts on behalf of the user then send them an alert when it finds a potential trading signal. The user can then choose to either take the trade or to conduct their very own additional analysis to further filter the signal to clarify if they deem it to be a valid point of entry.
What is the Fibo Quantum Trading Strategy?
The Fibo Quantum indicator displays what can be complex Fibonacci analysis in a user-friendly way.
For those who may not be familiar with the terminology, Fibonacci is basically a sequence of numbers that many believe has a self-fulfilling prophecy.
The sequence was discovered in the 13th century by Leonardo de Pisa who was amongst the most talented mathematicians of the Middle Age.
Leonardo came to a conclusion that there was a pre-set series of numbers and ratios that determined the natural proportion of things in the known universe.
In a Fibonacci sequence, every number is the sum of the previous two numbers. To illustrate the sequence: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89 and so on.
When applied to trading, a Fibonacci indicator will display multiple price levels where the markets could react. Around these levels, we can often see price reverse or breakout. As many traders use them, this can add to their significance. A
long with entry signals, Fibonacci levels are also used for managing trades such as placing stop losses, take profits, break evens and trading stops.
“There are only patterns, patterns on top of patterns, patterns that affect other patterns. Patterns hidden by patterns. Patterns within patterns. If you watch close, history does nothing but repeat itself…” – Novel by Chuck Palahniuk, Survivor.
The Fibo Quantum indicator gives you entry price along stop loss and take profit levels all based on the Fibonacci levels.
It has 3 modes each with different volatility detection; conservative, medium and aggressive. You can set it depending on your trading style.
You do not need to chart watch all day as signal alerts are sent via email, pop-ups and mobile push notifications, so that you never miss any price movements.
The Fibo Quantum indicator can be applied to any currency pairs and time frame. I prefer to trade on longer term time frames as I find the signals more accurate and there is not as much noise as there can be on lower term time frames.
I would also trade major currency pairs such as the EURUSD and GBPUSD as they usually have some of the lowest spreads and the most liquidity, especially if using an ECN forex broker.
Fibonacci Trading
As mentioned, the Fibo Quantum system uses Fibonacci levels for its trading signals. Fibonacci Retracements are ratios used to identify potential reversal levels. These ratios are found in the Fibonacci sequence. The most popular Fibonacci Retracements are 61.8% and 38.2%. Note that 38.2% is often rounded to 38% and 61.8 is rounded to 62%. After an advance, chartists apply Fibonacci ratios to define retracement levels and forecast the extent of a correction or pullback. Fibonacci Retracements can also be applied after a decline to forecast the length of a counter-trend bounce. These retracements can be combined with other indicators and price patterns to create an overall strategy.
Fibonacci retracement levels connect any two points that the trader views as relevant, typically a high point and a low point. The percentage levels provided are areas where the price could stall or reverse. A technical analyst looking for potential support and resistance levels will select two prominent points from a stock’s chart, typically the highest and lowest points over a set period of time, and divide the vertical distance by key Fibonacci ratios. With the levels identified, horizontal lines are drawn, enabling market makers to identify trading opportunities.
How to use the Fibo Quantum indicator?
The Fibo Quantum system has been developed to run in the MT4 platform. It comes as a trading template along with built-in indicators that you can apply to your chosen chart symbols and timeframes. You can use the default settings or adjust them according to your own needs. I would certainly practice on a forex demo account to begin with and only use this manual forex strategy as supplementary indicators to my own market analysis.
In order to use this forex system, you will need a trading account with a forex broker. With so many brokers to choose from, I have conveniently compiled a list of my best forex brokers to help you quickly and easily choose a broker that meets your needs.
Fibo Quantum Summary
Overall, the Fibo Quantum indicator is very flexible and user friendly. It can be used for all different types of trading styles and by traders of all experience levels.
It would probably work best provided the user implements sound money management principles with a favourable risk to reward ratio so that losing trades do not wipe out winning trades. Furthermore, you should always have your trading emotions in check with good discipline and patience.
The Fibo Quantum indicator could be a useful tool for any trader’s arsenal. It comes with instruction manual, support, updates and a money back guarantee.
Fibo Quantum
$147
Pros
- Manual Trading System
- Fibonacci Trading Signals
- Versatile Trading System
- Price Levels
- Easy To Use
- Any Trading Instrument
- Any Chart Time Frame
- Detailed Instructions
- Full Support
- Money Back Guarantee
Cons
- MetaTrader 4 Only
- Takes Time To Learn How To Use
- Requires Some User Initiative
- Not Very Innovative
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
