How to Draw Fibonacci Retracement Levels on MetaTrader 4

MetaTrader 4 Line Studies Tool Bar - Fibo Retracement Indicator

To calculate the price pullbacks on the chart for example the MetaTrader 4 we use Fibo retracement areas indicator as pictured on the shot below.

If you want to examine some forex 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 Platform. On MT4 platform this fibonacci retracement tool will automatically draw the retracement levels on a chart once it's placed on the chart.

To add this fibonacci retracement technical indicator tool in MetaTrader 4 platform, you can use the following short cut technique:

1. Click Insert 2. Click Fibonacci 3. Click Retracement

After adding this fibonacci retracement tool on the MT4 platform this fibonacci retracement technical indicator tool can then be accessed from "MetaTrader 4 Line Studies Tool-Bar" as displayed 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" button key at the tops left corner of MetaTrader 4 next to file, then click "Tool Bars", Then Check "Line Studies". You can learn how to use MT4 Line Studies Tool Bar on the MetaTrader 4 platform using a practice account.

Shown Below is example of the Fibonacci retracement indicator, we always draw the fibonacci retracement indicator between two chart points, point 1 and point 2, in the direction of the trend as shown below.

How to Place Fibo Retracement on a Chart

To Place this fibonacci retracement tool on a chart, click on the button shown above in MetaTrader 4 platform. 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.