Fibonacci Bands

A True Range value is computed and multiples of the Fibonacci Expansion ratios of this range are added to the moving average to create the Fibonacci Bands.

References Average True Range: /algos/show/10 or /algos/show/139 (You need this first)

Place on two different charts with different time frames and take trades from either short or long term chart when both charts show same trigger. Trades are short term reversals in direction of major trend on longer term chart unless you expect a trend reversal. Determine which band is the limiting band for the volatility of the instrument. When the market closes outside of the limiting band then returns inside, take a long/short one tick above/below the high/low of the previous bar.  Place stop below/above the low/high of the recent swing low/high. Set targets at opposite band of chart with trailing stop after crossing middle band.