MAC-Fibo Indicator

Description:

UPDATED ON 21-MAY-2012:
Below changes done in v1.1:
1. Done bar adjustment. Now it looks at 2 previous bars for trend determination.
2. Alert added.

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MACFibo trading strategy was the winner of March's Best Forex Trading System Contest at babypips.com. This trading system uses 3 moving averages to determine trade opportunities and Fibonacci extensions to determine stoploss and profit targets.

This is the indicator based on MACFibo trading strategy. More details about this strategy can be found here and babypips forum here.

SHORT SIGNAL:
When 5EMA crosses 20SMA down:
Draw 2 points as below:
POINT A; Candle close price that confirmed the downside crossover
POINT B: highest price of the current wave prior to the crossover,
Profit Target: @ 161.8 fibo level
Stop Loss: maximum 38.2 (minimum @ 78.6) based on your risk appetite.

Long SIGNAL:
When 5EMA crosses 20SMA up:
Draw 2 points as below:
POINT A; Candle close price that confirmed the upside crossover
POINT B: lowest price of the current wave prior to the crossover,
Profit Target: @ 161.8 fibo level
Stop Loss: maximum 38.2 (minimum @ 78.6) based on your risk appetite.

Exit mechanism for losing trades, if stoploss yet to hit: if 5EMA cross 8SMA in direction opposite of your open trade.

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