Fibonacci Bands Forex Trading System With Octopus Trend Indicator. Fibonacci Bands trading system is based on two dynamics levels of the Fibonacci retracement. But the other main feature is the setting asymmetric the levels of multi indicator alerts.
Why use an asymmetric levels, because the financial markets are not symmetrical and you try to interpret them with symmetric algorithms. Playing with the asymmetry maybe you can get some interesting results. This is an experimental idea.
Best Time Frame : H1 or higher ( H4 Works best).
Financial Markets : Futures, Stocks, Forex, Commodities.
Metatrader Indicators:
- Fibonacci Bands: (20,0 20);
- Buy Zone fibs (55,2);
- Sell Zone fibs, (55,2),
- TLab_FiboBand
- Octopus 1
- Octopus 2
Multindicators alerts:
- RSI (9-4)
- Stochastic ( 5,3,3);
- CCI (21, 4);
- Momentum (13);
- Money Flow Index (13);
- DeMarker 13 (13);
- Ma of indicator (13);
(level buy 40, level sell 100, these are the levels asymmetric).
Forex Fibonacci Retracement Bands Trading Rules – Trades only in direction of the trend. When the central band of Fibonacci band is between Buy Zone line and Sell Zone line do not trades.
- Buy Zone fibs > Sell Zone Fibs;
- Central band of Fibonacci bands Above> Buy Zone Fibs.
- Multi Indicator Alert up trend
- Octopus 1 and Octopus 2 green.
- Buy Zone fibs < Sell Zone Fibs;
- Central band of Fibonacci bands Above < Buy Zone Fibs.
- Multi Indicator Alert down trend
- Octopus 1 and Octopus 2 red.
At the green bands of the Fibonacci Bands or ratio 1:2 stop loss.
Initial stop loss below or above red band of Fibonacci bands.