How to Draw Fibonacci Retracement Levels on MetaTrader 4 Platform
MetaTrader 4 Line Studies Tool Bar - Fibonacci Retracement Indicator
To calculate these price pullbacks on the forex 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 forex trading charts using this Fibonacci retracement line studies tool, it is already provided for in the MT4 platform, the following procedure is used to add this Fibonacci retracement tool on the MetaTrader 4 Forex Trading Software. On The MT4 platform this fibonacci retracement tool will automatically draw the retracement levels on a forex chart once it is placed on the Forex chart.
To add this fibonacci retracement indicator tool on the MetaTrader 4 platform, you can use the following shortcut method:
1. Click Insert
2. Click Fibonacci
3. Click Retracement
After adding this fibonacci retracement tool on the MT4 platform this fibonacci retracement indicator can then be accessed from "MetaTrader 4 Line Studies Tool Bar" as shown below.
This fibonacci retracement tool is located on MetaTrader 4 (Line Studies Toolbar), to go to this MetaTrader 4 Line Studies tool bar 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 MetaTrader 4 Line Studies Tool Bar on the MetaTrader 4 platform using a demo practice account.
Below is an example of the Fibonacci retracement tool, we always draw the fibonacci retracement indicator between two chart points, point 1 and point 2, in the direction of the market trend as shown below.
How To Place Fibonacci Retracement on a Forex Chart
To Place this fibonacci retracement tool on a forex chart, click on the button shown above on the MetaTrader 4 forex software. Then select 2 chart points, the first point is where the trend starts and the second point is where the trend pull back is starting.