FiboBars is
a VertexFX client side VTL indicator that determines the direction of trends
and considered as a primary tool for traders. The indicator is desirable to be
used with small timeframes. Fibobars indicator is displayed as green and red
dots according to the Fibonacci.
When the
green point is shown on the chart then it is a signal to buy, if there is a red
point then close the current position of Buy and open a new one of Sell.
The
correction levels using Fibonacci numbers: 0.236, 0.382, 0.5, 0.618 and 0.762.
Method of calculation of the indicator:
-At first step, we calculate the Highest High value over the recent PERIOD bars.
-In the next step, we calculate the Lowest Low value over the recent PERIOD bars.
-Then we calculate the size of the waves, as the difference between the Highest High and Lowest Low. (Wawe=maxHigh-minLow)
-If you
roll back more than Wawe*fiboLevel this means that the market has changed and
there was a change of trend direction. Recommendation.
Input
parameters of the indicator:
period = 10 - the number of bars used to calculate the value of the indicator. By increasing the sensitivity setting indicator decreases. It is advisable to choose the optimal value of this parameter for a particular financial instrument and timeframe.
fiboLevel =
1, Level Fibonacci 1-0.236; 2-0.382; 3-0.5; 4-0.618; 5-0.762;
NBars = 500 - number on the bars that display the graph.
NBars = 500 - number on the bars that display the graph.
To use
FiboBars indicator download it from here, then place it at VertexFX VTL
directory:
C:\ProgramData\VertexFX
Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right
click on the tree and select refresh or restart your client station and you
will find under VTL local scripts in
your client terminal.
You can
check this video that talks about FiboBars indicator: