Placing Fibo Lines in MetaTrader 4 Software
The fifth option on the MT4 platform insert menu is Fib Lines. Fibonacci Lines Button has the following submenu buttons shown below:
Fibonacci on MT4
Fibonacci Lines
- FX Fib Retracement
- FX Fib Time Zones
- FX Fibonacci Fan
- FX Fib Arcs
- FX Fib Expansion
Forex Fibonacci Retracement
The Fibo retracement can be placed on a trading chart from the Fibonacci retracement button. Fibo retracement is used to try to project where a price retracement is likely to reach. The Fib retracement levels are drawn as shown and illustrated below. To learn how to draw & use Fib Retracement Levels read the guide: How to draw Fib Retracement Levels:
Fibo Retracement Levels Drawn on a Chart on the MetaTrader 4 Platform
FX Fib Time Zones
The Fibonacci time zones are Fibonacci lines plotted at different Fibo timelines, these Fibonacci time levels are calculated using Fibo points 1, 2, 3, 5, 8, 13, 21, 34. The Fib levels are 1+2=3, 2+3=5, 3+5=8, first number add to next, the next added to the second and so on.
The Fib time zones are illustrated below, at these time lines price changes are likely to occur based on technical analysis of Fib time zones:
Fibonacci Time Zones in MetaTrader 4
Forex Fib Fan
The Fib fan is drawn between two 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 MetaTrader 4
Forex Fib Arcs
Fib arcs are plotted using two points, arcs are then drawn as shown & illustrated below and these arcs represent 38.2%, 50.0% & 61.8% Fib retracement levels.
Fibonacci Arcs Representing Fib Retracement Zones on a Trading 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 on MT4
Learn More Tutorials & Lessons:
- Best Time to Trade GBPUSD Opening Time & Close Time
- Best Top 10 XAU USD Platforms for Beginners in XAU USD
- How Can I Trade UsTec 100 Guide Download?
- AEX 25 Technical Indicator MT4 Trading Indicators
- What are Chandes Q-Stick Buy & Sell FX Trading Signals?
