Placing Fibonacci Lines on MetaTrader 4 Stocks Platform
The fifth option on the MetaTrader 4 platform insert menu is Fibonacci Lines. The Fibonacci Lines Button has the following sub menu buttons shown below:
Fibonacci Stocks Trading on MetaTrader 4
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. 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 MetaTrader 4 Stocks Platform
Stock Trading Fibonacci Time Zones
The Fibonacci time zones are Fibonacci lines drawn at different Fibonacci timelines, these Fibonacci time zones are calculated using the Fibonacci points 1, 2, 3, 5, 8, 13, 21, 34. The Fibonacci 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 on MT4
Stock Trading Fibonacci Fan
The Fibonacci fan is drawn between two chart points and then three additional lines below the stocks trend are drawn as the fans, these are 38.2%, 50.0% and 61.8% Fibonacci 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 Fibonacci Fan Lines are drawn as shown below:
Fibonacci Fans on MetaTrader 4
Stock Trading Fibonacci Arcs
Fibonacci arcs are drawn using two chart points, the arcs are then drawn as shown below and these arcs represent 38.2%, 50.0% and 61.8% Fibonacci retracement levels.
Fibonacci Arcs Representing Stock Fibonacci Retracement Zones on a Stocks Chart
Stock Fibonacci Expansion
The Fibonacci expansion is used to determine the most probable level at which traders should set their take profit levels based on Fibonacci 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 levels are drawn as shown below. Tutorial: How to Draw Stocks Fibonacci Expansion Levels:
How to draw Fibonacci Lines and other Fibonacci studies like Stocks Fibonacci Expansion and Retracement on MetaTrader 4
