Placing Fibo Lines on MT4 Platform

The fifth option on the MetaTrader 4 cfds trading platform insert menu is Fibonacci Lines. The Fib Lines Button Key has the following submenu buttons shown below:

Fibonacci CFD Trading on MT4 Trading Platform

Fibonacci Lines

1. CFDs Fib Retracement
2. CFDs Trading Fib Time Zones
3. CFDs Trading Fibo Fan
4. CFDs Trading Fibo Arcs
5. CFDs Fibonacci Expansion

CFDs Fib Retracement

The Fib retracement can be placed on a CFD Trading chart from the Fib retracement button key. Fib retracement is used to estimate where a cfd price retracement is likely to reach. The Fib retracement levels are drawn as illustrated & shown below. To learn how to draw and use CFDs Fibonacci Retracement Levels read the guide: How to draw CFDs Fibonacci Retracement Levels:

CFDs Fibonacci Retracement Levels Drawn on a Chart on The MT4 Platform

CFDs Trading Fibo Time Zones

The Fib time zones are Fib lines drawn at different Fibo timelines, these Fib time zones are calculated using the Fib 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 the next, the next added to the second & so on.

The Fibo time zones are pictured below, at these time lines cfds price changes are likely to occur based on technical analysis of Fibonacci time zones:

Fibonacci Time Zones in MT4 Trading Platform

CFDs Trading Fibo Fan

The Fibonacci fan is drawn between 2 chart points and then 3 additional lines below the cfd trend are plotted 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 Fib Fan Lines are drawn as illustrated & shown below:

Fibonacci Fans in MT4 Trading Platform

CFD Trading Fibo Arcs

Fibo arcs are plotted using two chart points, the arcs are then drawn as illustrated & shown below & these arcs represent 38.2%, 50.0% & 61.8% Fib retracement levels.

Fibo Arcs Representing CFDs Fibonacci Retracement Levels on a CFD Chart

CFDs Fib Expansion

The Fib expansion is used to determine the most probable level at which traders should set their take profit levels based on Fib expansion level 61.8% and 100.0% expansion levels. The Fib expansion levels are also referred to as CFD Fibo Extensions or Fibo Projection Levels by some traders & these CFD Fibo Extension areas are plotted as shown below. Tutorial: How to Draw CFD Fibo Expansions:

How to draw Fibonacci Lines and other Fibonacci studies like CFD Fibo Expansion and Retracement on MT4 Trading Platform