How to Draw Fibonacci Retracement Levels on MetaTrader 4

Gold Fibonacci Retracement Indicator

To calculate these gold trading price pullbacks on the gold chart for example the MetaTrader 4 we use Fibonacci retracement levels tool/indicator as shown on the image below.

If you want to analyze some xauusd charts using this Fibonacci retracement line studies tool, it is already provided for in the MT4 platform, the following procedure is used to add this Fibonacci retracement tool on the MetaTrader 4 Software. On the MT4 platform this fibonacci retracement tool will automatically draw the retracement levels on a xauusd chart once it is placed on the XAUUSD chart.

To add this fibonacci retracement indicator in MT4 platform, you can use the following short cut method:

1. Click Insert 2. Click Fib 3. Click Retracement

After adding this fibonacci retracement tool on the MT4 platform this fibonacci retracement technical indicator can then be accessed from 'MetaTrader 4 Line Studies Tool Bar' as displayed below.

This fibonacci retracement tool is located on MetaTrader 4 (Line Studies Toolbar), to go to this MetaTrader 4 Line Studies tool bar click 'View' button at the tops left corner of MetaTrader 4 next to file, then click 'Toolbars', Then Check 'Line Studies'. You can learn how to use MT4 Line Studies Tool Bar on the MetaTrader 4 platform using a practice account.

Below is an example of the Fibonacci retracement tool, we always draw the fibonacci retracement indicator between 2 chart points, point 1 & point 2, in the direction of the trend as displayed below.

How to Place Fibonacci Retracement on a XAUUSD Chart

To Place this fibonacci retracement tool on a xauusd chart, click on the button shown above on the MetaTrader 4 software. Then select 2 chart points, the first point is where the xauusd trend starts and the second point is where the xauusd trend pull back is starting.