Placing Fib Lines on MetaTrader 4
The fifth option on the MT4 platform insert menu is Fib Lines. The Fib Lines Button has the following sub-menu buttons shown below:
Fibonacci in MT4
Fib Lines
- XAUUSD Fibonacci Retracement
- XAUUSD Fib Time Zones
- XAUUSD Fibonacci Fan
- XAUUSD Fibonacci Arcs
- Gold Fibonacci Expansion
Gold Fibo Retracement
The Fibo retracement can be placed on the a chart from the Fibo retracement button key. Fibo retracement is used to estimate where a trading price retracement is likely to reach. The Fibo retracement levels are drawn as illustrated & shown below. To learn how to draw & use Fib Retracement Levels read the tutorial: How to draw Fibonacci Retracement Levels:
Fib Retracement Levels Drawn on a Chart on the MetaTrader 4 Software
Gold Fib Time Areas
The Fibonacci time zones are Fibonacci lines drawn at different Fibonacci timelines, these Fibo time zones are calculated using Fibo points 1, 2, 3, 5, 8, 13, 21, 34. The Fib areas are 1+2=3, 2+3=5, 3+5=8, first number add to the next, next added to the second and so on.
The Fib time zones are displayed below, at these time lines price changes are likely to occur based on analysis of Fibonacci time zones:
Fibonacci Time Zones in MT4
Gold Fib Fan
The Fib fan is drawn between 2 chart points & then 3 additional lines below the trend are drawn as the fans, these are 38.20%, 50.00% and 61.8% Fibonacci retracement levels. The price is likely to bounce and continue in the original direction after price retraces to any of these fan lines.
The Fibo Fan Lines are drawn as illustrated & shown below:
Fibonacci Fans in MT4
Gold Fib Arcs
Fibonacci arcs are drawn using 2 chart points, the arcs are then drawn as illustrated & shown below & these arcs represent 38.2%, 50.0% and 61.8% Fibo retracement levels.
Fibo Arcs Representing Fib Retracement Areas on a Chart
Gold 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 Fibo expansion levels are also referred to as Fibonacci Extensions or Fib Projection Levels by some traders & these Fib Extension levels are plotted as shown below. Tutorial: How to Draw Fibonacci Expansions:
How to draw Fibo Lines & other Fibo studies like Fib Expansion and Retracement on MT4
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