The Break Out With TP and SL Fibonacci forex indicator for MetaTrader is a custom indicator that automatically identifies a breakout and then plots a Fibonacci level with optimal entry and TakeProfit.
Fibonacci is a mathematical sequence that identifies key support and resistance zones on the chart, which can be used as Stop Loss/Take Profit or a signal to BUY/SELL. This makes combining the Fibonacci and breakout a powerful trading strategy with higher winning rates.
How do you use Fibonacci for breakouts?
To use a Fibonacci, wait for a breakout, plot a Fibonacci, and wait for the price to retrace into an optimal zone before placing a BUY/SELL order. You don’t need to worry, as the indicator automatically performs the above functions.
The indicator would be useful for novice, intermediate, and advanced forex traders. Besides, it is recommended for both scalpers and day/intraday traders.
How to Trade With The Break Out With TP and SL Fibonacci forex Indicator
The above image shows the indicator on a EURUSD chart. It shows a RED box which suggests the maximum pips that the price may likely BUY/SELL before making a reversal. The pale GREEN box, on the other hand, suggests the ideal Take Profit zone. The indicator also marked a breakout zone with a SELL signal (SELL Order) and a corresponding Take profit.
With the above conditions, you may open a SELL/SHORT position, with your Take Profit set at the same value as the TP1 on the chart. Moreover, you may also trail your Stop Loss after TP1 for maximum Profit from the signal.
Note that the BUY/SELL signal is recommended to be taken when it aligns with the trend direction of the market. This helps to increase the probability of winning the trade. In other words, ignore BUY signals generated in a bearish market.
The Break Out With TP and SL Fibonacci forex indicator for MT4 is a technical tool that works with trend breakouts and Fibonacci retracement levels. Finally, it is free to download.