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The Fibo Code Strategy

The Fibo Code Strategy is a price action trend forex trading system. Fibo Code is a robust strategy that could be used over diverse curre...

The Fibo Code Strategy is a price action trend forex trading system.
Fibo Code is a robust strategy that could be used over diverse currency pairs. The strategy has proved to be profitable over multiple pairs however when starting out with this strategy it is recommended that you limit to 3-4 Currency pairs.
Fibo Code works over two timeframe, longer term timeframe (4 Hr) is used to form a daily trading bias. Whereas, shorter term timeframe (15 M) is used to confirm trading signal.
You can open two charts for each currency pairs with different timeframe.
Metatrader 4 Indicators
10 Period SMA shift (1)
FiboTrend (Custom Indicator): Fibo Ratio 1 (8) Fibo Ratio 2 (13) Fibo Ratio 3 (21)-Fast EMA (8), Slow EMA (21), Signal EMA (9)
Fibo DI (Custom Indicator) (8, 13, 21).
Note: To draw fibonacci retracements or use the metatreder 4 tool or in the folder I included two indicators that draw fibonacci retracements, the MT4 indicators are: Fibonacci and Fibonacci retracement.
Fibonacci retracement to mark important levels. The retracement levels need to watch very carefully. You can scale out (partially close) order when price hits anyof these levels.
Fibonacci retracement will draw yellow horizontal lines at the following levels: 0.00%, 23.6%, 38.2%, 50%, 51.8%, 61.8%, 100%, 161.8% and so on. The following image shows the Fibonacci retracement drawn using short-term uptrend.
The Fibo Code Strategy
The image below show Fibonacci retracement drew using short-term down trend. In simple terms it means if the price retrace it is likely to hit these levels and these levels acts as support and resistance for the price.
Buy
A Candle must cross the SMA and close above it.
Fibo DI should be green for confirmation.
FiboTrend histogram must start going up.
Stoploss is below the last swing low.
Buy Exit Rule
Price reaches strong resistance level.
OR Price crosses back below the SMA and FiboDI turned Red or Gray.
Sell
Price must cross the 10 SMA downwards and the candle must close below it.
FiboDI should be red for confirmation.
FiboTrend histogram must be pointing down.
Stop is above last swing high.
Sell exit
Price reaches a strong support level.
OR Price crosses back above the SMA and FiboDI turned Green Or Gray.
Long tade example
The Fibo Code Strategy
The image above shows EURUSD chart with the custom indicators and Fibonacci.
Retracement levels drawn from last high to recent low. The Fibonacci.
Retracement levels are marked by yellow horizontal lines. These are important levels which should be watched closely and could be used as scale out levels means you can partially close trade when price crosses these levels. 
The Fibo Code Strategy
The image above shows labeled EURUSD chart with trade triggers for buy entry.
The price closed above 10 Period SMA at 1.2098, for confirmation we will check FiboTrend and FiboDI.
FiboTrend bars are going up whereas, FiboDI is green therefore this gives us positive confirmation so we will enter at 1.2098.
Fibonacci exit points are marked 50%, 61.8% and 100%. These levels could be used as scale out points.
Stoploss should be set at swing low in this example its 1.2076.The candle closed below SMA at 1.2121 with stochastic pointing down which marked the trade exit point.
Short Trade example
We will draw Fibonacci Retracement for the last swing high from isstarting low position. The retracement levels marked by yellow horizontal lines are important levels. These levels could be used as scale out levels means you can partially close trade when price crosses these levels.
The Fibo Code Strategy
The Fibo Code Strastegy
The image above shows labeled diagram with trade triggers for sell trade.
The price closed below 10 Period SMA, for confirmation we will check FiboTrend and FiboDI.
FiboTrend histogram is declining whereas, FiboDI is red therefore this gives us positive confirmation so we will enter at 1.2310
Fibonacci exit points are marked 61.8%, 100% and 161.8%. These levels could be used as scale out points.
Stoploss should be set at swing high in this example its 1.2331
The candle closed above SMA at 1.2293 with stochastic pointing upward which marked the trade exit point.

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