589# Fibonacci Bands Trading System

Submit by Zen 23/08/2014 

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.

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),

MACD 3m ( 2, 5, 0, 3),

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).

Rules for Fibonacci Bands Trading system

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.

Long entry

Up trend:

Buy Zone fibs > Sell Zone Fibs;

Central band of Fibonacci bands Above> Buy Zone Fibs.

For entrywait the yellow arrow confirmed by histogram MACD with aqua bar.

Short Entry

Buy Zone fibs < Sell Zone Fibs;

Central band of Fibonacci bands Above < Buy Zone Fibs.

For entry wait the red arrow confirmed by histogram MACD with Yellow bar.

Exit Position

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.

This is an idea for programmers, so that, create natively indicators asymmetrical. I think it's a search for treding interesting. 

In the pictures Fibonacci Bands Trading System

Buy

when the price touches or breaks the lower band of Fibonacci B. wait the first yellow buy arrow.

Sell

when the price touches or breaks the upper band of Fibonacci B. wait the first red arrow.

Initial stop loss 5 pips above or below the previous swing.

Profit Target at the first dynamic: support o resistance or before the middle band.

ZUP Indicator

Fisher and Vortex