Placing Fibonacci Lines on MetaTrader 5
The fifth option on the MT5 software insert menu is Fibonacci Lines. The Fib Lines Button Key has the following submenu MT5 buttons shown below:
Fibonacci Forex on MetaTrader 5
Fib Lines
- Forex Trading Fib Retracement
- Forex Trading Fib Time Zones
- Forex Trading Fib Fan
- Forex Trading Fib Arcs
- Forex Trading Fib Expansion
Forex Trading Fib Retracement
The Fibo retracement can be placed on a Forex chart from the Fibonacci retracement button. Fibo retracement is used to estimate where a forex price retracement is likely to reach. The Fibo retracement levels are drawn as shown and illustrated below. To learn how to draw and use Fibonacci Retracement Levels read the tutorial: How to draw Fibonacci Retracement Levels:
Fibonacci Retracement Levels Drawn on Forex Chart on the MT5 Platform
Forex Trading Fib 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 Fibo levels are 1+2=3, 2+3=5, 3+5=8, first number add to the next, the next added to the second & so on.
The Fibonacci time zones are shown below, at these time lines forex price changes are likely to occur based on forex technical analysis of Fibonacci time zones:
Fibonacci Time Zones in MT5
Forex Trading Fibonacci Fan
The Fib fan is drawn between two chart points & then three additional lines below the forex trend are drawn as the fans, these are 38.2%, 50.0% & 61.80% Fibo retracement levels. Forex price is likely to bounce & continue in the original direction after forex price retraces to any of these fan lines.
The Fibo Fan Lines are drawn as shown and illustrated below:
Fibonacci Fans on MetaTrader 5
Forex Trading Fibonacci Arcs
Fib arcs are drawn using two chart points, arcs are then drawn as shown & illustrated below & these arcs represent 38.2%, 50.0% & 61.8% Fibo retracement levels.
Fibonacci Arcs Representing Fibonacci Retracement Zones on a Chart
FX 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% and 100.0% expansion levels. The Fibo expansion levels are also referred to as Fibonacci Extension Levels or Fibonacci Projection Levels by some traders and these Fibonacci Extension areas are drawn as shown below. Tutorial: How to Draw Fibonacci Expansion Levels:
How to draw Fib Lines and other Fibo studies like Fibonacci Expansion and Retracement on MetaTrader 5
