This indicator is base of the Fibonacci indicator. However unlike most of the other indicator that operate according to the Fibonacci indicator, this indicator do not display the Fibonacci levels, rather, it only gives the signals when necessary to. The indicator is simplified and best even for the forex beginners.
This indicator come in a package of three indicators (fibonaccimystery1h.ex4, fibonaccimystery15m.ex4 and fibonaccimystery30m.ex4) that are programmed to work on different timeframes. For maximum profits the trader should try and these three indicators on their corresponding to the timeframe that they are designated to be used on. However, if you load for example the fibonaccimystery1h.ex4 and you switch to the 15M timeframe, the indicator will still work but not as good as when the fibonaccimystery15m.ex4 on the 15M timeframe.
This indicator is programmed for use with the major currency pairs excluding the GBP/USD. The best results however are obtained when used to trade the EUR/USD. The indicator will automatically not load in the currency pair charts with which it is not designed to be used to trade. That is if you try loading it on the EUR/CHF or any other currency pair that is not a major, the indicator will not be displayed.
Fig.1. The Fibonacci Mystery indicator(fibonaccimystery1h.ex4) on EUR/USD currecncy.
This indicator displays ticks, Xs and arrows. The color of the arrows vary between green and red. The red arrow is displayed when there is a down trend prediction and the green arrow is displayed when there is an upward trend prediction. The Xs and the ticks color don’t change. The Xs are red while the ticks are always green. These two acts as a confirmation of the signal that is given by the indicator.
How to trade using the Fibonacci Mystery indicator.
Trading using the Fibonacci Mystery indicator is quite easy with the trader only being required to place trade when the signals appear. However, the trader has to understand specifically when to place trades.
Trades should only be placed when the X, arrow and tick are formed. If any of the three is not formed, the trader should avoid placing any order despite how the chance seems to be tempting. If all of them are not formed, it means that the signal is not confirmed and the market can move in any direction. Mainly, in such circumstances, the market prices will tend to move slightly in the direction of the arrow and then move drastically in the opposite direction without a signal being given.
Placing sell orders: the sell orders should be placed when a red arrow is formed. Then there have to be a tick below the bars and an X.
Placing a buy order: buy orders are placed when a green arrow is displayed and there is an X and a tick.
After placing the orders the trader has to place stops. You should not wait until an opposite signal is formed since the indicator give signal when the trend is confirmed and by the time the opposite signal is being given, your order may be making loses.
When trading with the fibonaccimystery1h.ex4, you should consider using a take profit of 30 pips and a stop loss at the previous lowest point. But if there is no lower point in the previous day, use a stop loss of 20 pips.
Fig.2. Placing trades using the Fibonacci Mystery indicator.
When using the fibonaccimystery15m.ex4, you should consider a take profit of 5 pips and a stop loss of 15pips.
fibonaccimystery30m.ex4, you should consider using a take profit of 15 pips and a stop loss of 15 pips.
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