TMS Magicfibo & ADR Trade Levels indicator

We have just completed a new indicator to automatically calculate our MagicFibo and Average Daily Range trading levels. The only input required is the previous swing high or swing low price level and the indicator does the rest as well as plotting the levels on your chart.

Below is an example of NZDUSD which was an ADR signal for Friday the 19th of October. After showing very promise it did close out Break Even.

This indicator is essential and free to our active Club members. All that is needed is a valid MT4 account number.

Magicfibo Levels

H/L (Swing High/Low)

In this sell example, it is the HIGH of the “1” price bar that you would input into the TMS Target Indicator. The Indicator will then automatically calculate instantly all other levels from the Close of the previous day.

MS (Manual Stop)

The Manual Stop is the 85.4% level on your MagicFibo tool. This is a manual stop that is triggered if the Close of the trading bar is above or below the Manual Stop level at the end of the trading day. Please note that our signals are based on New York close data only.

You should place in Emergency Stop below the previous swing low when trading long and swing high when trading short. This is an Emergency Stop only and could be a hundred or more pips.

The TMS Target Indicator allows you to adjust this level.

PC (Previous Day Close/Entry)

This is the Close price of the previous day’s trading at the New York session close. This is also referred to as our “Signal Bar”. The TMS Target Indicator automatically knows this price level.

This price level is our “Entry Level” as a guide to entering an order. As I will explain below, I use Limit orders to enter and will make adjustments for the spread. See “Tips” below.

BE (Break-Even Level)

The Break-Even level is the 47.2% MagicFibo level. When the price reaches this level you move your Emergency Stop to +1 pips so that you can no longer lose in the trade. The TMS Target Indicator allows you to adjust this level

It is advantageous to use a Trade Manager to do this automatically for you. There are many available on the Internet. A free you could use is called “Sleeptight EA”. We also have our own trade manager called “TMS Trade Manager” which is an add-on option. It can be used to place Limit and Limit Stop trades including partial close, Break-even and Trailing-stops. See details here.

T1 (Profit Target 1)

Profit Target 1 is the 38.2% MagicFibo level. This is the “safe” level  to return a risk reward ration of 1

T2 (Profit Target 2)

Profit Target 2 is the 23.6% MagicFibo level. This level returns a risk-reward ration of 1.6.

Average Daily Range Levels

Average Daily Range Levels

We use a 10 day Average Daily Range to calculate the various levels.

There are free ADR indicators available on the Internet. The Market which is accessed through your MT4 terminal has an indicator called “Average Daily Range” which is free.

PC (Previous Day Close/Entry)

ADRL (Average daily range LOW)Where our ADR levels vary from many other indicators is that the levels are calculated from the “PC” or previous day close price level. Most other ADR indicator calculates from the open of the current or live bar.

ADRH (Average daily range high)

The ADR Target is half or 50% of the 10 day Average Daily Range in the direction of the trade. The TMS Target Indicator allows you to adjust this level by changing the number of days the ADR uses.

HBE (Break-Even Level)

The Buy Break-Even level default setting is set at 50% of the ADRH target. The TMS Target Indicator allows you to adjust this level.

ADRL (Average daily range LOW)

The ADR Target is half or 50% of the 10 day Average Daily Range in the direction of the trade. The TMS Target Indicator allows you to adjust this level by changing the number of days the ADR uses.

ADR Target

The ADR Target is half or 50% of the 10 day Average Daily Range in the direction of the trade signal.



  1. Use “Limit Orders” and allow the price to come to you. If you look at the charts most bars have tails.
  2. At the open of each day the Spreads can be large in you should wait until they normalise before placing your orders. If you cannot wait you should at least alter your Limit order to include the spread and some.
  3. If you get a better Entry you should not increase the pip profit but adjust the levels.
  4. If you get an Entry that is worse than the previous day Close you should reduce the Profit Target as not to increase the levels.
  5. IF PRICE MOVES TO BREAK-EVEN LEVEL BEFORE TRIGGERING ENTRY WHEN USING LIMIT ORDERS THEN CANCEL TRADE. Use Mt4 built-in Alert system. There is also an indicator called TLine Alertthat you could use. ALL CONSERVATIVE TRADERS SHOULD USE  1/2 of the 10-Day ADR LEVEL
  6. If you have questions please email us.

Money Management

Please employ sound Money Management principles as this is vital to profitability. There are many articles written on the Internet which you should read and study. Although we could suggest a risk factor, this varies according to your risk appetite.

Above all trade safe!

DISCLAIMER: Trading futures, options on futures and off-exchange Foreign Exchange market (FX, Forex) is very speculative in nature, involves considerable risk and is not suitable for all investors. Before participating in trading, you should carefully consider your investment objectives, level of experience and risk appetite. Investors should only use risk capital when trading because there is always the risk of substantial loss. Most importantly, do not invest money you cannot afford to lose. Any mention of past performance is not indicative of future results. Account access, trade executions and system response may be adversely affected by market conditions, quote delays, system performance and other factors. Past results as represented in testimonials are not necessarily indicative of future results or success. Testimonials may not be representative of all reasonably comparable students. Trading involves significant risk of loss and may not be suitable for all investors. RISK WARNING: Trading futures and foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your monetary objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent advisor if you have any doubts. Past returns are not indicative of future results. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. Privacy Policy