The Fibo Lines Indicator is a very simple yet extremely powerful indicator for manual traders. The Italian math genius Fibonacci discovered a unique correlation between a certain number sequences. Today, we know those numbers as the Fibonacci numbers.
This indicator looks at a recurring pattern around a specific Fibonacci prime number – 11. In our personal trading experience, every time price came close to any of the numbers the sum of which equalled 11, the price bounced back. If price managed to break past any of those numbers, then the breakout continued for quite some time before a higher number stopped it dead in its tracks.
TimeFrames are the same as in the Multi-SR Indicator. Line shift is the same as in the SR Lines indicator. Line Type, Line Width and Line Color are just cosmetic settings so you can choose whatever you like for these.
Notice how price behaved around 47, 137, 29, 11 and 83 – Now add each of these digits together and you will see something interesting. Each of those numbers when added together comes to 11. 47 – 4+7=11, 137: 1 + 3 + 7 = 11 and so on…
You can see very easily that every time price came close to these numbers, something strong happened. It either broke through…like in 47, 137, 29 and 11 or held its ground bouncing right back up, as seen in 83.
Take this knowledge in one hand, use your understanding of trends in the other hand and you will have a super simple, yet extremely powerful directional trading method that will stand the test of time.
Just for fun… lets overlay the Fibonacci Mystery Lines indicator and the Multi-SR indicator and see if we can find some correlation…