Placing Fibonacci Lines on MetaTrader 4
The fifth option on the MT4 software insert menu is Fib Lines. The Fib Lines Button has the following sub-menu buttons shown below:
Fibonacci XAUUSD Trading in MT4
Fib Lines
- XAUUSD Trading Fib Retracement
- XAUUSD Trading Fib Time Zones
- XAUUSD Trading Fib Fan
- XAUUSD Trading Fibonacci Arcs
- Gold Trading Fibonacci Expansion
Gold Trading Fibo Retracement
The Fibo retracement can be placed on the a XAUUSD Trading chart from the Fibo retracement button key. Fibo retracement is used to estimate where a gold trading price retracement is likely to reach. The Fibo retracement levels are drawn as illustrated & shown below. To learn how to draw & use Fibonacci Retracement Levels read the tutorial: How to draw Fibonacci Retracement Levels:
Fib Retracement Levels Drawn on a Gold Chart on the MetaTrader 4 Platform
Gold Trading Fibonacci Time Zones
The Fibo time zones are Fibo lines drawn at different Fibo timelines, these Fibo time zones are calculated using Fibo points 1, 2, 3, 5, 8, 13, 21, 34. The Fib areas are 1+2=3, 2+3=5, 3+5=8, first number add to the next, next added to the second and so on.
The Fibonacci time zones are shown below, at these time lines gold price changes are likely to occur based on technical analysis of Fibonacci time zones:
Fibonacci Time Zones in MT4
Gold Trading Fibonacci Fan
The Fib fan is drawn between 2 chart points & then 3 additional lines below the xauusd trend are drawn as the fans, these are 38.20%, 50.00% and 61.8% Fibonacci retracement levels. The gold trading price is likely to bounce and continue in the original direction after gold price retraces to any of these fan lines.
The Fibo Fan Lines are drawn as illustrated & shown below:
Fibonacci Fans on MetaTrader 4
Gold Trading Fibonacci Arcs
Fibonacci arcs are drawn using two chart points, the arcs are then drawn as illustrated & shown below & these arcs represent 38.2%, 50.0% and 61.8% Fibo retracement levels.
Fibo Arcs Representing Fibonacci Retracement Zones on a XAUUSD Chart
Gold Trading Fibonacci Expansion
The Fibo expansion is used to determine most probable level at which traders should set their take profit levels based on Fibo expansion level 61.8% & 100.0% expansion levels. The Fibo expansion levels are also referred to as Fibonacci Extension Levels or Fibonacci Projection Levels by some traders & these Fibonacci Extension levels are plotted as shown below. Tutorial: How to Draw Fibonacci Expansion Levels:
How to draw Fibo Lines & other Fibo studies like Fibonacci Expansion and Retracement on MetaTrader 4
