The Fibonacci Channel Forex indicator for Metatrader 5 is a popular price action tool that draws all Fibonacci retracement levels on the chart.
The most commonly used Fibonacci retracement levels are: -0.786%, -0.618%, -0.500%, -0.382%, and -0.236%.
The Fibonacci Channel indicator works very well to buy dips or sell rallies in trending markets.
- The most popular level used by Forex traders is the -0.382% Fibonacci retracement level.
- Traders look to enter buy or sell trades when the price touches this level.
The indicator works pretty well for any trade style.
First, familiarize yourself with this technical indicator and test it on a demo account.
It supports all time frames, Forex pairs, and any other trade instrument.
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Fibonacci_Channel.mq5 Indicator (MT5)
Chart Example
The following chart shows how the Fibonacci Channel indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Fibonacci Channel Forex Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is given when price touches the -0.382% Fibonacci retracement level and the market is trending up.
- This is a buy on dips trade opportunity in the uptrend.
- Open a buy transaction and place a stop loss below support.
- Exit the buy trade for a reward/risk ratio of at least 2.0 or better.
Sell Signal
- A sell signal is given when price touches the -0.382% Fibonacci retracement level and the market is trending down.
- This is a sell on rallies trade opportunity in the downtrend.
- Open a sell transaction and place a stop loss above resistance.
- Exit the sell trade for a reward/risk ratio of at least 2.0 or better.
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Fibonacci_Channel.mq5 Indicator (MT5)
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Fibonacci_Channel.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration