FIBO Candle Projection | Foreign Exchange EA Download- MT4/MT5 Resources

First, the pattern will be used for potential areas of price action. I will explain the basics of this pattern in the first few articles and then expand on potential ways to act on price changes.

First, we look for aggressive price movements with x number of candles in a row. It doesn't matter how many candles there are in a row, but what matters more is the price movement of the candle compared to the previous price movement.

For example, if the price moves back and forth within a deviation of 100-250 basis points, then we will get a price movement of 400 basis points, and for 5 consecutive candles, this will be considered for price prediction. We then plot the Fibonacci areas using the 142 projection.

This is a simple form of the pattern. Of course, the price does not always reach 142, but reverses, and these ideas will be covered in the following posts.

Example 1:

Example 2: In the second pattern, you will notice that the price never drops below the lowest price. But on the contrary, it hit the opposite 142 in reverse.