• The Lux Algo Fibonacci Progression / Price Deviation indicator reveals significant deviations of price from a central level (either user-defined or derived from ATR) based on Fibonacci multiples.

  These deviations can highlight potential reversal zones or trend continuation breakouts, especially when price moves far away from the “center” and then returns (or breaks through).

  When combined with trend confirmation and proper filtering, you can try entering trades when price reverts or breaks out of a deviation zone.

Setup & Parameters

1. Indicator Setup

   • Use the Lux Algo Fibonacci Progression or Price Deviation indicator in MT4/MT5.

     Choose the “ATR method” mode (i.e., deviations = multiples of ATR) rather than fixed/manual distance (this helps adapt to volatility).

     Set the ATR multiplier sequence (e.g. 1×, 2×, 3× Fibonacci levels) and maximum sequence length (how many deviations you track).

Entry Rules

Here are two complementary entry setups:

Setup A — Reversion from Deviation (Mean Reversion)

When price has deviated strongly away from the central level (i.e. touches or exceeds a high deviation band), expect potential pullback toward center.

• Long Entry:

  1. Price touches or exceeds lower deviation band (i.e. large downward deviation).

  2. Price shows bullish candlestick pattern (e.g. pin bar, engulfing) or momentum shift.

  3. Confirm trend is bullish (e.g. price above 50 EMA).

  4. Enter long near the deviation zone, targeting the central level or next deviation level.

  Short Entry:

  1. Price touches or exceeds upper deviation band (i.e. large upward deviation).

  2. Price shows bearish reversal pattern or momentum weakens.

  3. Confirm trend is bearish (price below 50 EMA).

  4. Enter short near deviation zone, target central level or next lower deviation.

Setup B — Breakout of Deviation / New Level Establishment

Sometimes, after a deviation, price breaks through the deviation band and establishes a new central level (indicator may reset).

• Long Entry:

  1. Price breaks above upper deviation / channel boundary (with closing beyond break threshold).

  2. Candle close confirms breakout (e.g. strong bullish candle).

  3. Indicator resets central line (new baseline) and the breakout direction matches trend.

  4. Enter long at close or on retest of the breakout zone.

  Short Entry:

  1. Price breaks below lower deviation / boundary zone.

  2. Confirm with a bearish close / momentum.

  3. New baseline is reset downward, trend confirms.

  4. Enter short on breakout or retest.

Stop Loss, Take Profit & Risk Management

• Stop Loss

  • For reversion trades, place SL just beyond the extreme deviation band (beyond the zone that triggered the signal).

    For breakout trades, place SL just inside the boundary or above the retest zone (i.e. just above the breakout level for shorts, or below for longs).

• Take Profit

  • A common target is the central level of the indicator (mean reversion) or the next deviation band.

    For breakout trades, target 1× or 2× the distance of the breakout (measured from central level to break level).

    Use trailing stops once a favorable move is in motion.

• Position Sizing & Risk

  • Risk only a small percentage per trade (e.g. 1–2 %).

    Adjust lot size so that SL distance fits your risk limit.

    Avoid overtrading — wait for clear, high-probability setups.

Example Flow (Long Reversion)

1. Price is above 50 EMA → trend is up.

2. The indicator’s lower deviation band is touched (major deviation downward).

3. Price forms a bullish candlestick reversal (hammer, engulfing).

4. Enter long at or slightly above reversal candle’s high.

5. Place SL just below the lower deviation band + a small buffer.

6. Target the central level (or mid deviation) as first TP, possibly extend to upper deviation.

7. If price breaks lower deviation further (contrary move), exit early.

Additional Tips & Enhancements

• Multi-timeframe Confirmation: Check that higher timeframe (e.g. daily) is aligned with trade direction.

  Volume / Momentum Confirmation: Use rising volume during breakouts or strong oscillator moves to confirm.

  Avoid in low volatility: If ATR is small, deviation bands compress and signals weaken.

  Backtest diligently: Test historically with varying parameters (sequence length, ATR multiplier) to find optimal settings for your pair and timeframe.

  Use trailing or break-even stop when trade moves sufficiently in your favor.

Submit by Ketang

This is a trend following system. This trading system is for Metatrader 4.

The metatrader indicators are:

TTM Trend, Solar wind, Solar wind clean, Sylver Trend Signal, RSTL,New MACD,MAX Moving Averages, Ma of Heiken Asci, Heiken Asci smoothed wit alert, Fisher, Daily pivot.

The template that the package include are:

Zor V.1, Zor V. (sade).