Placing Fibonacci Lines in MetaTrader 4 Platform
The fifth option on the MT4 platform insert menu is Fib Lines. The Fib Lines Button has the following submenu button keys shown below:
Fibonacci in MT4
Fibonacci Lines
- Stock Fibonacci Retracement
- Stock Fibonacci Time Zones
- Stock Fibonacci Fan
- Stock Fibonacci Arcs
- Stock Fibonacci Expansion
Stock Fibonacci Retracement
The Fibo retracement can be placed on the a chart from the Fibonacci retracement button key. Fibonacci retracement is used to estimate where a price retracement is likely to reach. The Fibo retracement areas are plotted as shown below. To learn how to draw and use Stock Fibonacci Retracement Levels read the guide: How to draw Stock Fibonacci Retracement Levels:
Stock Fibonacci Retracement Levels Drawn on a Chart on The MT4 Stocks Software
Stock Fibonacci Time Zones
The Fibo time zones are Fibo lines plotted at different Fibo timelines, these Fibo time zones are calculated using the 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 and 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 MT4
Stock Fibonacci Fan
The Fib fan is drawn between 2 chart points & then 3 additional lines below the trend are plotted as the fans, these are 38.2%, 50.0% & 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 Fib Fan Lines are drawn as shown below:
Fibonacci Fans in Meta Trader 4
Stock Fibonacci Arcs
Fibo arcs are plotted using two chart points, the arcs are then drawn as shown below & these arcs represent 38.2%, 50.0% & 61.8% Fibo retracement levels.
Fibo Arcs Representing Stock Fibonacci Retracement Zones on a Chart
Stock Fibonacci Expansion
The Fibo expansion is used to determine the 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 extension levels are also referred to as Stocks Fibonacci Expansion Levels or Fibonacci Projection Levels by some traders & these Stocks Fibonacci Extension areas are drawn as shown below. Tutorial: How to Draw Fibonacci Extension Levels:
How to draw Fib Lines and other Fibonacci studies like Stocks Fibonacci Expansion and Retracement in Meta Trader 4
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