How to Draw Fibonacci Retracement Levels on MetaTrader 4

MetaTrader 4 Line Studies Tool Bar - Fibonacci Retracement Indicator

To calculate these price pullbacks on the forex 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 forex 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 MT4 platform this fibonacci retracement tool will automatically draw the retracement levels on a forex chart once it is placed on the chart.

To add this fibonacci retracement technical indicator tool in MetaTrader 4 platform, you can use the following short cut technique:

1. Click Insert 2. Click Fibonacci 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 key 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.

Shown Below is example of the Fibonacci retracement tool, we always draw the fibonacci retracement indicator between two chart points, point 1 and point 2, in the direction of the Forex trend as shown below.

How to Place Fibonacci Retracement on a Chart

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