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The Fibo Retracement & Semafor trading strategy will be an excellent assistant to the trader in trading on the financial market, whether it be binary options or Forex. This system works best on the H1 timeframe. This strategy has been implemented using the AFR and Semafor indicators.
It is no secret that strategies based on Fibonacci levels are not always easy to understand, but they always work out well. Fibonacci levels can tell a trader both the main market movement and the beginning-end of the correction in relation to the global trend. Facilitating the drawing of Fibonacci levels and avoid subjectivity, the AFR indicator is used to automatically create the Fibonacci markings.
Any currency pair is suitable for trading according to the Fibo Retracement & Semafor strategy, so you can open all pairs that your broker has in the terminal and track signals.
Strategy settings
Download and install the AFR and Semafor indicators on our website in the Indicators section. Apply both indicators to the trading asset chart.
AFR indicator does not require any adjustments. Just apply it to the H1 timeframe chart.
Then, having installed the Semafor indicator, change the Period1, Period2, and Period3 values in the settings of its parameters to 4, 14, and 40, respectively.
Thus, the system is ready for use.
Conditions for opening short positions
1. The candlestick crosses the Fib level 61.8 (or is close to this level), from the bottom up, is already above it, or bounces off it.
2. The Semafor indicator draws the number 2 or 3 in a circle above the candlestick.
After these conditions are met, a sell deal is opened.
Conditions for opening long positions
For long positions, the same conditions apply, but in a mirror image:
1. The candlestick crosses the blue line 61.8 of the AFR indicator, from top to bottom, bounces or is already below this level;
2. We are waiting for Semafor to draw two or three and enter to buy UP.
Stoploss and TakeProfit
Stoploss and take-profit, according to the rules of this strategy, are set at the closest levels from the 61.8% level. For example, if this is a buy trade, the stop loss is set at 50% and the take profit at 100%.
Conclusion
As you can see from the description, the Fibo Retracement & Semafor strategy, thanks to the use of the AFR indicator, which makes automatic marking, and the Semafor indicator, which filters the levels, is a fairly simple and understandable system. Traders using this strategy claim that this is a pretty profitable tactic. But before using the system on a live account, we recommend that you practice on a demo. This way, you will be able to estimate the required volumes of transactions, which will correspond to the size of your deposit.
