How to Draw Fibo Retracement Areas on MetaTrader 4

MT4 Line Studies Tool Bar

To calculate these stocks price pullbacks on the chart for example the MT4 we use Fibo retracement areas indicator tool as shown on the shot below.

If you want to examine some stocks 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 MT4 Platform. On The 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 on the MT4 platform, you can use the following short-cut method:

1. Click Insert 2. Click Fib 3. Click Retracement

After adding this fibonacci retracement tool on the MT4 platform this fibonacci retracement technical indicator can then be accessed from 'MT4 Line Studies Tool Bar' as displayed below.

This fibonacci retracement tool is located on MT4 (Line Studies Toolbar), to go to this Meta Trader 4 Line Studies tool bar click 'View' button at top left corner of MT4 next to file, then click 'Tool Bars', Then Check 'Line Studies'. You can learn how to use MetaTrader 4 Line Studies Tool Bar on the MT4 platform using a demo practice account.

Below is example of the Fibonacci retracement indicator, we always draw the fibonacci retracement indicator between 2 chart points, point 1 and point 2, in direction of the trend as displayed 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 the MT4 platform. Then select 2 chart points, the first point is where the stocks trend starts and the second point is where the stocks trend pull back is starting.