Fibonacci Optimal Entry Zone runs on MT4 and MT5. It reads market structure, waits for a
change of character, and then draws the 0.5 to 0.618 retracement band of each swing that
follows in the new direction. When price closes through the swing that created a band,
the band comes off the chart.
What the number actually is
The structure. Swings come from a pivot with 20 bars on the left and 5 on the right.
That right hand number is the part worth understanding: a bar cannot be confirmed as a
swing until five more bars have printed after it. Nothing here guesses, and nothing gets
taken back later, but the label and the zone both appear five bars after the bar they
belong to. That is the trade this design makes and it is not adjustable away.
Each confirmed swing is named against the swing two before it: HH, HL, LH or
LL.
The change of character. When the newest swing runs past the one before it in the
opposite direction, that's a CHoCH. A horizontal line is drawn at the level that broke,
and the zone tracker resets to the new direction.
The zone. After a CHoCH, every new swing in the new direction gets a dotted line from
its start to its extreme, and a box between the two Fibonacci levels of that swing:
Level1 = 0.618 Level2 = 0.500
That band is what people call the OTE, the optimal trade entry. Both numbers are inputs,
so if you'd rather work 0.705 to 0.79 you can.
What happens to a zone
This is the part that separates it from drawing fibs by hand.
A zone stays live while price has not closed beyond the swing that created it. While it's
live it extends to the right, bar by bar, so it stays in front of you.
The moment price closes through that swing's origin, or closes past the far side of the
band, the zone is finished. With Show Previous off, the default, it is removed from the
chart entirely rather than left there to clutter it. Turn Show Previous on and dead
zones stay where they died.
Where this differs from drawing fibs yourself
| What a retracement tool has to decide | What most of them do | What this one does |
|---|---|---|
| Which swing to measure | Whichever two points you clicked | The swing after a confirmed change of character |
| When a swing counts | As soon as it looks like one | Five bars after it, or not at all |
| How long the band lives | Until you delete it | Until price closes through the swing that made it |
| What to do with dead bands | They stay until you tidy up | Removed, unless you ask for them |
| How you know price arrived | You watch | An alert fires on the close that lands inside |
The fourth row sounds like housekeeping and isn't. A chart carrying six months of fib
retracements that stopped meaning anything in March is a chart you stop reading. Only the
live ones being drawn is the difference between a tool and a mess.
What you can change
Fill Golden Zone is off by default, so a zone is an outline and you can see the candles
inside it. Turn it on and it's filled with Golden Zone Color, which is easier to spot
and harder to read through.
Extend controls whether a live zone's right edge follows the current bar. Swing Lables
turns the HH/HL/LH/LL naming on and off. Structure Period Left and Right set how big a
swing has to be, and the right hand one also sets how long you wait.
Alerts are off out of the box. Set Notification type and one fires on a close inside a
zone, and only once the indicator has been running, so a year of history gives you a year
of drawings and no alerts. On MT5 the block also takes a Telegram bot token and channel
id; the MT4 build does platform alerts and email only, which is what MQL4 gives you.
What it can't do
Five bars is five bars. On H4 that's most of a day before a swing is confirmed. Lower
Structure Period Right and you get faster structure and more of it; there is no setting
that gives you both speed and certainty.
It only tracks the current direction. After a bullish CHoCH it draws zones on the
swings that make higher lows, and it is not simultaneously watching for the bearish ones.
That's deliberate, and it means the chart shows one story rather than two.
It only calculates the last 1000 bars by default. Scroll far enough left and the
structure stops.
A zone is a level, not a signal. Price reaching 0.5 to 0.618 of a swing is a place
where a lot of people are looking, which is the whole argument for it, and it is not a
reason on its own.
You won't find a win rate table in this listing, and I'd be careful with any indicator
listing that has one. It marks structure and draws a band.
Honestly, the fiddliest part of building the MT4 side was how little there was to it. The
pivot helper handles its own indexing on each platform and hands back the same structure,
and the body only ever reads the bar it's on, so the port came down to the loop direction
and dropping Telegram. That is not usually how these go.
Questions you'll have
Does Fibonacci Optimal Entry Zone repaint? No. A swing needs five bars to its right
before it is confirmed, so it appears late rather than appearing early and moving. Once a
label or a zone is drawn it stays where it is until price invalidates the zone.
Why did my zone disappear? Price closed through the swing that created it, so it is no
longer a live level. Turn on Show Previous if you want dead zones to stay on the chart.
Why is the zone an outline instead of shaded? Because a filled band hides the candles
inside it, which is where you're looking. Turn on Fill Golden Zone if you prefer it
shaded.
Can I use levels other than 0.5 and 0.618? Yes, Level1 and Level2 are plain inputs.
Set them to 0.705 and 0.79 and you get that band instead.
What are the best settings for Fibonacci Optimal Entry Zone? Change Structure Period
Left first, since that sets how big a swing has to be. Leave Right at 5 unless you
accept faster and noisier structure.
Can I get Telegram alerts? On MT5, yes, via the bot token and channel id in the
notification block. The MT4 build does platform alerts and email only.
MT4 or MT5? Both, and your subscription covers both. Same structure rules, same
defaults, one download each.
Support
Message me through the site with a screenshot showing the chart, plus the symbol and
timeframe. That's usually enough for me to tell you what happened. Updates are included
for as long as your subscription is running.
Analysis tool. It places no trades and makes no profitability claim. Past price
behaviour is not a guide to future price behaviour.