Placing Fibonacci Lines on MT4
The fifth option on the MT4 commodities trading platform insert menu is Fib Lines. Fibonacci Lines Button has the following sub-menu buttons shown below:
Fibonacci Commodities on MT4
Fib Lines
- Commodity Trading Fibonacci Retracement
- Commodity Trading Fibonacci Time Zones
- Commodity Trading Fibonacci Fan
- Commodities Trading Fib Arcs
- Commodity Trading Fibonacci Expansion
Commodity Trading Fib Retracement
The Fibo retracement can be placed on the a Commodity Trading chart from the Fibonacci retracement button key. Fib retracement is used to estimate where a commodity price retracement is likely to reach. The Fibonacci retracement levels are drawn as illustrated and shown below. To learn how to draw & use Commodity Fibonacci Retracement Levels read the course: How to draw Commodity Trading Fib Retracement Levels:
Commodity Trading Fib Retracement Levels Drawn on a Commodity Trading Chart on The MT4 Commodity Software
Commodity Trading Fibonacci Time Zones
The Fib time zones are Fibo lines drawn at different Fib timelines, these Fib time zones are calculated using the Fib 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 commodity price changes are likely to occur based on technical analysis of Fibonacci time zones:
Fibonacci Time Zones in MT4
Commodities Trading Fib Fan
The Fib fan is drawn between two chart points & then three additional lines below the commodity trend are drawn as the fans, these are 38.2%, 50.00% and 61.80% Fibonacci retracement levels. Commodity price is likely to bounce & continue in the original direction after commodity price retraces to any of these fan lines.
The Fibo Fan Lines are drawn as illustrated & shown below:
Fibo Fans on MT4
Commodities Trading Fibonacci Arcs
Fib arcs are drawn using two chart points, the arcs are then drawn as illustrated and shown below & these arcs represent 38.2%, 50.0% & 61.8% Fib retracement levels.
Fibo Arcs Representing Commodity Trading Fib Retracement Zones on a Commodity Trading Chart
Commodities Trading Fib Expansion
The Fibo expansion is used to determine the most probable level at which traders should set their take profit levels based on Fib expansion level 61.8% & 100.0% expansion levels. The Fibonacci expansion levels are also referred to as Commodity Trading Fib Extension Levels or Fibo Projection Levels by some traders & these Commodity Trading Fib Extension areas are plotted as illustrated and shown below. Tutorial: How to Draw Commodity Fib Expansion Levels:
How to draw Fib Lines and other Fibonacci studies like Commodity Trading Fibonacci Expansion and Retracement in MetaTrader 4
