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