Placing Fibonacci Lines on MetaTrader 4
The fifth option on the MT4 software insert menu is Fib Lines. Fibonacci Lines Button has the following sub-menu buttons shown below:
Fibonacci Forex on MT4
Fibonacci Lines
- Forex Trading Fib Retracement
- Forex Trading Fibonacci Time Zones
- FX Trading Fibonacci 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 price retracement is likely to reach. The Fibo retracement levels are drawn as shown and illustrated below. To learn how to draw & use Fibonacci Retracement Levels read the tutorial: How to draw Fibonacci Retracement Levels:
Fibonacci Retracement Levels Drawn on a Forex Chart on the MetaTrader 4 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 price changes are likely to occur based on technical analysis of Fibonacci time zones:
Fibonacci Time Zones in MetaTrader 4
Forex Trading Fib Fan
The Fib fan is drawn between two chart points & then three additional lines below the trend are drawn as the fans, these are 38.2%, 50.00% and 61.80% Fibonacci retracement levels. Price is likely to bounce & continue in the original direction after price retraces to any of these fan lines.
The Fibo Fan Lines are drawn as shown and illustrated below:
Fibonacci Fans on MT4
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
Forex Trading Fib 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 & these Fibonacci Extension levels are plotted 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 MT4
