Fibonacci Miracle Trading System

The Fibonacci Miracle Trading System talks about the key stop-loss and take-profit levels. In this guide, we’ll talk about this forex system and how you can trade it.

What is the Fibonacci Miracle Trading System?

The Fibonacci Miracle indicator plots key stop-loss levels and take-profit levels on the chart. The system applies the Fib levels as part of its calculation to represent these levels.

Unlike the traditional Fib tool on MT4, the indicator doesn’t plot the Fib levels but uses them to indicate multiple profit levels. These profit levels are categorized as PROFIT LEVEL NORMAL, PROFIT LEVEL AGGRESSIVE, and PROFIT LEVEL HIGHT AGGRESSIVE. The first one is take-profit 1, then TP2, and then TP3. It can be helpful if you want to scale out of the trade and take profits on different levels.

The system also tells about the current trend and the buy/sell level, and stop-loss levels. This info isn’t available when trading with the Fibonacci tool. So, you can use this info to look at the overall trend and develop a strategy accordingly.

Fibonacci Miracle Trading System
Fibonacci Miracle Trading System

Fibonacci Miracle Trading System Strategy

The Fibonacci Miracle is not a typical trend-following indicator, although it does tell you the current trend. A better way to use the indicator is to add another indicator, like the Moving Averages, to find the direction of the trend and then take position accordingly.

If the price is below the MA, and the Fibonacci Miracle shows a downtrend, you can look for short positions when the Fibonacci Miracle indicates SELL LEVEL. Conversely, if the Fibonacci Miracle shows an uptrend and the price is above the MA, you can look for long entry positions when the indicator shows a BUY level.

Although the indicator works best on all timeframes, you must apply Fibonacci Miracle Trading System on longer timeframes to avoid market noise.

Buy Signal

  • The Fibonacci Miracle Trading System must show an uptrend.
  • The price must be above the Moving Average.
  • Enter at the BUY LEVEL.
  • Place a stop-loss at STOPLOSS LEVEL.
  • Set multiple take-profits at the TP1, TP2, and TP3.
Fibonacci Miracle Trading System buy signal
Fibonacci Miracle Trading System buy signal

Sell Signal

  • The Fibonacci Miracle Trading System must show a downtrend.
  • The price must be below the Moving Average.
  • Enter at SELL LEVEL.
  • Place a stop-loss at STOPLOSS LEVEL.
  • Set multiple take-profits at the TP1, TP2, and TP3.
Fibonacci Miracle Trading System sell signal
Fibonacci Miracle Trading System sell signal

Fibonacci Miracle Trading System Pros & Cons

Before trading with the Fibonacci Miracle Trading System, it’s important to note its pros and cons.

Pros

  • The system mentions everything from BUY/SELL to stop-loss and multiple TP levels.
  • It plots the buy/sell level on the current price action.

Cons

  • The system may not be suitable for shorter timeframes.
  • You may need to apply other indicators for further signal

Conclusion

The Fibonacci Miracle Trading System helps present key info along with the BUY/SELL signals. You can add another indicator to confirm the direction of the trend further. The system is easy to use and can be helpful for beginners. However, you may want to confirm all signals with additional market analysis. I would be looking at price action including support and resistance levels along with any bullish or bearish candlestick patterns. As with any forex strategy, you should have excellent money management so that one bad trade does not cancel out a consecutive run of winners. You can always practice trading on a forex demo account to begin with to improve your trading skills and build up your confidence. Most forex brokers provide a free demo account, including IC Markets. They are my top choice for both manual and automated forex trading systems. This is because they have tight spreads, quick execution speeds, low commission fees and excellent 24/7 support.

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