Placing Fibonacci Lines on MetaTrader 4
The fifth option on the MT4 platform insert menu is Fib Lines. Fibonacci Lines Button has the following sub-menu buttons shown below:
Fibonacci in MT4
Fibonacci Lines
- Forex Fib Retracement
- Forex Fib Time Zones
- FX Fibonacci Fan
- Forex Fib Arcs
- Forex Fib Expansion
Forex Fib Retracement
The Fibo retracement can be placed on a chart from the Fibonacci retracement button. Fibo retracement is used to try to project where a price retracement is likely to reach. The Fibonacci retracement levels are drawn as shown and illustrated below. To learn how to draw and use Fibonacci Retracement Levels read the guide: How to draw Fib Retracement Levels:
Fibo Retracement Levels Drawn on a Chart on the MetaTrader 4 Platform
Forex Fib Time Zones
The Fibonacci time zones are Fibonacci lines plotted at different Fibo timelines, these Fibonacci time zones are calculated using Fibo points 1, 2, 3, 5, 8, 13, 21, 34. The Fibonacci levels are 1+2=3, 2+3=5, 3+5=8, first number add to next, the next added to the second & so on.
The Fibonacci time zones are illustrated below, at these time lines price changes are likely to occur based on technical analysis of Fibonacci time zones:
Fibonacci Time Zones in MetaTrader 4
Forex Fib Fan
The Fibo fan is drawn between two chart points and then three additional lines below the trend are plotted as the fans, these are 38.2%, 50.00% and 61.80% Fibonacci retracement levels. Price is likely to bounce & continue in the original direction after price retraces to any of these fan lines.
The Fibonacci Fan Lines are drawn as shown and illustrated below:
Fibonacci Fans in MT4
Forex Fibonacci Arcs
Fibo arcs are plotted using two chart points, arcs are then drawn as shown & illustrated below and these arcs represent 38.2%, 50.0% & 61.8% Fibo retracement levels.
Fibonacci Arcs Representing Fibonacci Retracement Zones on a Chart
Forex Fib Expansion
The Fibonacci expansion is used to determine most probable level at which traders should set their take profit levels based on Fibo expansion level 61.8 % and 100.0% expansion levels. The Fibonacci expansion levels are also referred to as Fibo Expansion Levels or Fibonacci Projection Levels by some traders & these Fibonacci Extension levels are plotted as illustrated below. Tutorial: How to Draw Fib Extension Levels:
How to draw Fib Lines and other Fibo studies like Fibo Expansion and Retracement in MT4
