Full Review of the Quickfib Tool for Binary Options Trading
Most of us know about Fibonacci, his Golden Ratios and how Fibonacci levels can be used as Support and Resistance, but just to refresh your memory, you could read Fibonacci for Binary Options Review. However, the main problem when using Fibonacci levels is the subjectivity involved. Different traders can identify different swings high/ low and that will generate different levels for the Fibonacci retracement. With the help of a little custom indicator called QuickFib, we can overcome that inconvenient and transform Fibonacci levels into an objective tool.
How does QuickFib work?
Once you apply it to a chart, it automatically draws Fibonacci retracements by identifying the last swing low and swing high. That’s it; plain and simple. The great thing about it is that it works by itself, once you got it on a chart, it will do the job without any interference from you. Here’s how it looks:
As you can see, the indicator identifies the latest swing high and swing low and uses those to draw Fibs, but that’s not all: notice on my picture above the two red thin lines? Those are a little bonus because they are automatic trend lines; you now have Fibonacci retracements, an uptrend line and a down trend line. Cool, huh? And things get even better: if you zoom in your chart, the QuickFib will automatically adjust itself and plot the Fibonacci retracements corresponding to the swing high and swing low available on the screen. In other words, if I zoom in, the swing high that I can see on the chart above will not be visible anymore, but instead I will see another one on my screen. The QuickFib will automatically adjust for the new swing high. Hope I didn’t confuse you, but here’s another picture to clear the fog (same chart as above but zoomed in):
If you zoom out, the same thing is going to happen: the QuickFib will adapt to the new situation and it will identify new swings, according to the new conditions. Here’s a zoomed out picture:
All the three pictures are of the same chart with different levels of zoom and as you can see, the QuickFib adapts itself with no help from the trader.
Why does the QuickFib Suck?
I can’t say much about that because I can’t find any bad things about the indicator itself. Sometimes Fibonacci retracements are broken and price goes up or down through them like a hot butter through butter. After all, Fibs are levels of Support and Resistance and all those levels are eventually broken, but this has nothing to do with the indicator because the QuickFib doesn’t inform us about whether a level is going to hold or not; that’s another story. If I want to be picky I can say I don’t like the fact that I can’t change the color of the retracement levels…but I’m not going to be picky ;)
Why the QuickFib doesn’t Suck?
This is an easy to use indicator and unlike other tools, it does what it is supposed to do: automatically draw Fibonacci retracements. This small but sometimes troublesome task is completed with no problems by QuickFib so there’s not much else I could require from it. On top of that, it adjusts itself and also draws trend lines, a job that I know it’s a bit hard for some traders, especially new ones.
The One Sided Conclusion – Great!
I must admit I like this tool. A lot. There are so many custom indicators out there that are built for something but fail to accomplish their purpose and are full of bugs. The QuickFib is not one of them and I commend its creator for the good job he or she has done with this indicator. I like Fibonacci levels, but not because they have some mystical power over the market; instead, I consider their power comes from the fact that a lot of traders watch them. When that happens, price reacts to those levels and their popularity grows, making them more important so having a tool that automatically identifies them is a great addition to a trader’s tool box. Once again, thanks to the coder of this custom indicator.
Find out More about QuickFib Tool for Binary Options Here!