Channel Fibo Reversal Strategy

Channel fibo reversal strategy is a trading system for fast trading on all time frame. The strategy is based on Channel fibo MTF indicator mq4. the idea of the strategy is to wait until the price reaches the overbought and oversold areas outside the channel and to trade on the reversal signals.

The strategy is Multime Frame because if you decide to trade for example at the 15 min time frame the Channel fibo MTF indicator mq4 is set at the 30 min time frame. Therefore, Channel fibo MTF indicator mq4 always sets a time frame higher than the current one.

Time Frame 1 min or higher.

Currency pairs: any, for low time frame only Major, Gold, S&P 500, Dax and Nasdaq.

Metarader 4 indicators:

Channel fibo MTF indicator mq4

setting:

time frame > 1

depth extremum search 78;

MA period 10, ma simple, close.

Fibolevel 1 23%;

Fibolevel 1 38%;

Fibolevel 1 50%;

Fibolevel 1 68%;

EG entry Pro setting indicator based on Dot MMS (used also for Binary options high /low).

Setting:

RSI up period 4;

RSI up level 17.5;

RSI down period 4;

RSI down level 77.5.

Trading rules Channel Fibo reversal strategy

Buy

When the price go out the lower bands of the Channel Fibo MTF indicator, wait a reversal buy signal of EG entry Pro.

Sell

When the price go out the upper bands of the Channel Fibo MTF indicator, wait a reversal sell signal of EG entry Pro.

Exit position

The stop loss and profit target depends by pairs ad time frame.

example USD / JPY 18 pips stop 18 pips profit target.

The stop loss / profit target ratio is recommended 1: 1.

Profit levels can be the levels of the fibonacci bands.

Due to this characteristic, the martingale with variable multiplier from 1.1 to max 2.0 can be applied as money management.

Download Channel Fibo reversal strategy indicators and Template.