The indicator placed in the Open Slot determines the entry level.
In that case, the entry levels are at the 38.2%, 50%, 61.8% and the 100% Fibo retracement lines.
FSB plots 5 of the Fibonacci lines:
green - the current top (or bottom ) - 0% retracement
yellow - 38.2%
purple - 50.0%
violet - 61.8%
and red - 100% retracement - this is the previous bottom (or top)
When FSB recognizes a point as a Top (or bottom) it puts this 5 lines starting from the next bar. The program tries to be 100% sure of the calculations. It waits until the ending of the bar to determine is the current highest price top. Once the program knows the current top it calculates the lines using last bottom as a 100% retracement line.
If the market falls, it crosses the fibo lines consecutively and the FSB checks the logic at each line.
When the price touches the first - 38.2% line, FSB checks all the open conditions and if they allows it opens a new long position (Logic - Reverse) ore a short one (Logic - Continue).
If the conditions do not allows there is no a signal.
The same happens at each line.
Once a line has been touched it can not be used as an entry point again. It works only the first time. We avoid multiple signals.
The parameter sensitivity serves to guide Fibo indicator to recognize a market top as a Fibo top. Greater the number means that the Fibo needs a higher top (or a lower bottom).
This indicator can be very tricky. It sometimes repaints the past changing the tops and the bottoms.
I want to advise you - DO NOT use it on the real market. I put it in the list of the indicators to give you an opportunity to discover its diabolism. It happens very rear, but it is vital on the real market.