Automated Trading via Expert Advisors

Technical Analysis  Line Studies  Fibonacci Tools  Fibonacci Channel

Analyze with the

Fibonacci Channel

Fibonacci Channels are built using several parallel trend lines. To build this instrument, the channel having the width taken as a unit width is used. Then, parallel lines are drawn at the values equal to the Fibonacci Numbers, beginning with 0.618-fold size of the channel, then 1.000-fold, 1.618-fold, 2.618-fold, 4.236-fold, etc. As soon as the fifth wave finishes, correction in the direction opposite to the trend can be expected.

It is necessary to remember for a correct Fibonacci Channel building: base line limits the upper part of the channel when trend is ascending, and the lower part of it when trend is descending.

Warning: All rights on these materials are reserved by MetaQuotes Software Corp. Copying or reprinting of these materials in whole or in part is prohibited.