Placing Fibonacci Lines in MetaTrader 5 Platform
The fifth option on the MT5 cfds trading platform insert menu is Fib Lines. The Fibonacci Lines Button has the following submenu MT5 button keys shown below:
Fibonacci CFDs on MetaTrader 5
Fib Lines
- CFDs Fib Retracement
- CFDs Trading Fib Time Zones
- CFDs Trading Fib Fan
- CFDs Trading Fib Arcs
- CFDs Fib Expansion
CFDs Fib Retracement
The Fibonacci retracement can be placed on the a CFD chart from the Fibonacci retracement button. Fibonacci retracement is used to estimate where a cfd price retracement is likely to reach. The Fib retracement levels are drawn as shown & illustrated below. To learn how to draw & use CFDs Fibonacci Retracement Levels read the tutorial: How to draw CFDs Fibonacci Retracement Levels:
CFDs Fibonacci Retracement Levels Drawn on a CFDs Chart on The MetaTrader 5 CFD Platform
CFDs 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 and so on.
The Fibonacci time zones are shown below, at these time lines cfd price changes are likely to occur based on cfd technical analysis of Fibonacci time zones:
Fibonacci Time Zones in MT5
CFDs Trading Fibonacci Fan
The Fibonacci fan is drawn between 2 chart points and then 3 additional lines below the cfd trend are drawn as the fans, these are 38.20%, 50.0% & 61.80% Fibo retracement levels. Cfd price is likely to bounce & continue in the original direction after cfd price retraces to any of these fan lines.
The Fibo Fan Lines are drawn as shown and illustrated below:
Fibonacci Fans on MetaTrader 5
CFDs Trading Fib Arcs
Fibonacci arcs are drawn using two chart points, the arcs are then drawn as shown & illustrated below & these arcs represent 38.2%, 50.0% & 61.8% Fibo retracement levels.
Fibo Arcs Representing CFDs Fibonacci Retracement Zones on a CFDs Chart
CFDs 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% & 100.0% expansion levels. The Fibonacci expansion levels are also referred to as CFD Fibonacci Extension Levels or Fibonacci Projection Levels by some traders and these CFD Fibonacci Extension levels are plotted as shown below. Tutorial: How to Draw CFD Fibonacci Expansion Levels:
How to draw Fibonacci Lines and other Fibo studies like CFD Fibonacci Expansion and Retracement on MetaTrader 5
