Placing Fibonacci Lines in MetaTrader 4 Platform
The fifth option on the MT4 platform insert menu is Fib Lines. The Fib Lines Button has the following submenu button keys shown below:
Fibonacci Stocks Trading in MT4
Fibonacci Lines
- Stock Fibonacci Retracement
- Stock Trading Fibonacci Time Zones
- Stock Trading Fibonacci Fan
- Stock Trading Fibonacci Arcs
- Stock Fibonacci Expansion
Stock Fibonacci Retracement
The Fibonacci retracement can be placed on the a Stocks Trading chart from the Fibonacci retracement button key. Fibonacci retracement is used to estimate where a stocks price retracement is likely to reach. The Fibonacci retracement levels are drawn as shown below. To learn how to draw and use Stock Fibonacci Retracement Levels read the tutorial: How to draw Stock Fibonacci Retracement Levels:
Stock Fibonacci Retracement Levels Drawn on a Stock Chart on The MT4 Stocks Platform
Stock Trading Fibonacci Time Zones
The Fibo time zones are Fibo lines drawn at different Fibo timelines, these Fibo time zones are calculated using the 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 and so on.
The Fibonacci time zones are shown below, at these time lines stocks price changes are likely to occur based on technical analysis of Fibonacci time zones:
Fibonacci Time Zones in MT4
Stock Trading Fibonacci Fan
The Fib fan is drawn between 2 chart points & then 3 additional lines below the stocks trend are drawn as the fans, these are 38.20%, 50.0% & 61.8% Fibo retracement levels. The stocks price is likely to bounce and continue in the original direction after stocks price retraces to any of these fan lines.
The Fib Fan Lines are drawn as shown below:
Fibonacci Fans on MetaTrader 4
Stock Trading Fibonacci Arcs
Fib arcs are drawn using two chart points, the arcs are then drawn as shown below & these arcs represent 38.2%, 50.0% & 61.8% Fibo retracement levels.
Fibo Arcs Representing Stock Fibonacci Retracement Zones on a Stocks Chart
Stock Fibonacci Expansion
The Fibo expansion is used to determine the 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 Fibonacci expansion levels are also referred to as Stocks Fibonacci Extension Levels or Fibonacci Projection Levels by some traders and these Stocks Fibonacci Extension areas are drawn as shown below. Tutorial: How to Draw Stocks Fibonacci Expansion Levels:
How to draw Fib Lines and other Fibonacci studies like Stocks Fibonacci Expansion and Retracement on MetaTrader 4
