How to Draw Fibonacci Retracement Levels on MetaTrader 4 Platform
To calculate these price pullbacks on the chart for example the MetaTrader 4 we use Fibonacci retracement levels tool/indicator as shown on the image below.
If you want to analyze some charts using this tool, it is already provided for in the MT4 platform, the following procedure is used to add this tool on the MetaTrader 4 Software. On The MT4 this tool will automatically draw the retracement levels on a chart once it is placed on the the Forex chart.
To add this tool on the MetaTrader 4 software, you can use the following shortcut method:
1. Click Insert
2. Click Fibonacci
3. Click Retracement
After adding this tool on the MT4 platform this indicator can then be accessed from "MetaTrader 4 Line Studies Tool Bar" as shown below.
This tool is located on MetaTrader 4 (Line Studies Toolbar), to go to this toolbar click "View" at the top left corner of MetaTrader 4 next to file, then click "Toolbars", Then Check "Line Studies". You can learn how to use it on the MetaTrader 4 using a demo practice account.
Below is an illustration of the Fibonacci retracement tool, we always plot the indicator between two points, point 1 and point 2, in the direction of the Forex trend as shown below.
How To Place Fibonacci Retracement on a Forex Chart
To Place this tool on a chart, click on the button shown above on the MetaTrader 4 software. Then select 2 chart points, the first point is where the trend starts and the second point is where the trend pull back.