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 Meta Trader 4
Fibonacci Lines
- Forex Fib Retracement
- Forex Fibonacci 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 estimate where a price retracement is likely to reach. The Fibo retracement levels are drawn as shown and illustrated below. To learn how to draw & use Fibo Retracement Levels read the guide: How to draw Fibonacci Retracement Levels:
Fibo Retracement Levels Drawn on a Chart on the MetaTrader 4 Platform
Forex Fib Time Zones
The Fibo time zones are Fibo lines plotted at different Fibo timelines, these Fibo time zones are calculated using Fibo points 1, 2, 3, 5, 8, 13, 21, 34. The Fibo levels are 1+2=3, 2+3=5, 3+5=8, first number add to the next, the next added to the second & so on.
The Fibo time zones are pictured 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 Fib fan is drawn between two chart points & 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 Fibo Fan Lines are drawn as shown and illustrated below:
Fibonacci Fans in Meta Trader 4
Forex Fibonacci Arcs
Fibo arcs are plotted using two chart points, arcs are then drawn as shown & illustrated below & 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 Fibo 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 Fibo expansion levels are also referred to as Fibo Expansion Levels or Fibonacci Projection Levels by some traders & these Fibo Extension levels are plotted as shown below. Tutorial: How to Draw Fibonacci Extension Levels:
How to draw Fib Lines and other Fibo studies like Fibo Expansion and Retracement in Meta Trader 4
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