The indicator automatically draws Fibonacci levels from the highest highs to the lowest lows and vice versa, which can be combined with a pyramid strategy to improve the risk – reward ratio. Includes a customizable Fibonacci range, as well as an alert feature.
The main idea of pyramid trading in trading is to top up the position when the market moves in a favorable direction. In this case, the stop loss moves up or down (depending on the direction of trading) to protect the positions. This allows you to maintain the overall risk while increasing the size of the position.
Advantages of the pyramid trading strategy:
Disadvantages of the Pyramid trading strategy:
How to use the Fibonacci Pyramid Strategy
For forex traders, the Fibonacci-Pyramid indicator allows you to determine where to place orders to enter the market, as well as levels for fixing profits and setting stop-loss. Fibonacci levels are widely used in the Forex market for trading on support and resistance levels.
The Fibonacci retracement levels determine the key support and resistance levels. Fibonacci levels are usually calculated after a large market movement up or down and relative stabilization at a certain level. Traders plot key Fibonacci levels at 38.2%, 50% , and 61.8% by drawing horizontal lines on the chart at the corresponding price levels. This allows you to determine the levels to which the market can roll back before returning to the general trend formed by the initial large price movement. Fibonacci levels are considered especially important when the market has approached or reached an important support or resistance level.
The 50% level is not really part of the Fibonacci sequence, but is included due to its widespread use in trading, when the market rolls back about half of the main movement before the main trend resumes and continues.
Trading using Fibonacci-Pyramid levels
- Depth-offset = calculated bars – depth (default is 12).
- Deviation – price deviation up/down (default is 5).
- Backstep-show the entry points on the history on the price chart for visual evaluation.
- alert – enable / disable notification when the price touches the Fibonacci zone.
Free Download and Review Fibonacci Pyramid from Fxbotreview.com/