In the price chart below for EURJPY the fibonacci levels for a pullback have been marked, with levels for entry, stop and target prices marked with line segments (green, red and blue respectively).
Below the price chart is the custom indicator.
The black lines indicate price range, with the yellow line representing close price. When a pullback opportunity occurs, the yellow line splits into 3 lines - red representing the 100% pullback level for the stop, the green representing the 61.8% retracement level for the entry, and the blue line representing the target price with a 2.6:1 reward-to-risk ratio. During the period of the split lines, the yellow line represents a 1:1 reward-to-risk ratio that can be used to achieve break-even by scaling out 50% of the position of this price level.
A trade would be triggered if price crosses up through the green line.
My motivation for creating the indicator was to speed up manual testing of pullback strategies and to facilitate automated backtesting.
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