Bollinger Band - Fibonacci Ratios Expert Advisor Setup - Fibonacci Ratios Expert Advisor
Bollinger Band - Fibonacci Ratios Expert Advisor Setup - Setting Up Bollinger Bands - Fibonacci Ratios Expert Advisor - A trader can come up with an Bollinger Bands - Fibonacci Ratios Expert Advisor based on the awesome indicator explained below.
Bollinger Band - Fibonacci Ratios Expert Advisor rules can be combined with other indicators to come up with other EA Bots that trade using rules based on two or more indicators combined to form a system.
Bollinger Bands - Fib Ratios Technical Analysis and Signals
Derived from the original Bollinger bands.
The Bollinger Fibonacci ratios is a volatility based indicators but it doesn't use the standard deviations to calculate the width of the bands instead it uses a smoothed ATR that are multiplied with Fibo ratios of 1.618, 2.618, and 4.236.
The smoothed lines that are multiplied with Fibonacci ratios are then added or subtracted from the MA.
This forms Three upper Fibo bands & Three lower Fibo bands
Middle band forms the basis of the market trend.
Bollinger Band - Fibonacci Ratios Expert Advisor Setup
FX Analysis & How to Generate Signals
This indicator used to determine point of support & resistance for a forex pair.
Lines below represent support points while those above are resistance zones.
The outermost bands provide the strongest resistance/support.
The inner most bands provide least support/resistance.
The innermost band represents Fibonacci 38.2 % retracement level
The second band represents Fibo 50 % retracement level
The outermost band represents Fib 61.80 % retracement level
The Indicator is used to determine points where price might reverse. (Price Pullback Levels)
When price hits one of the lines & reverses then an entry or exit signal is generated.
However, it's always good to combine the signal with other confirmation indicators such as the MA to confirm the signal as illustrated below.
Analysis - Forex Bollinger Bands - Fibonacci Ratios Expert Advisor Setup
