Placing Fibonacci Lines on MT4 Software
The fifth option on the MT4 commodities trading platform insert menu is Fib Lines. Fibonacci Lines Button has the following submenu button keys shown below:
Fibonacci Commodity Trading in MetaTrader 4 Platform
Fib Lines
- Commodity Trading Fibonacci Retracement
- Commodity Trading Fibonacci Time Zones
- Commodities Trading Fib Fan
- Commodities Trading Fib Arcs
- Commodities Trading Fib Expansion
Commodities Trading Fib Retracement
The Fibonacci retracement can be placed on the a Commodity Trading chart from the Fibonacci retracement button key. Fibonacci retracement is used to estimate where a commodities trading price retracement is likely to reach. The Fibonacci retracement levels are drawn as shown and illustrated below. To learn how to draw & use Commodities Trading Fibonacci Retracement Levels read the course: How to draw Commodities Fibo Retracement Levels:
Commodities Trading Fibo Retracement Levels Drawn on a Commodities Trading Chart on The MT4 Commodity Trading Software
Commodities Trading Fib Time Zones
The Fibonacci time zones are Fibonacci lines drawn at different Fibonacci 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, next added to the second and so on.
The Fibonacci time zones are shown below, at these time lines commodities trading price changes are likely to occur based on technical analysis of Fibo time zones:
Fibonacci Time Zones in MetaTrader 4 Platform
Commodities Trading Fibonacci Fan
The Fib fan is drawn between two chart points & then three additional lines below the commodity trend are drawn as the fans, these are 38.2%, 50.0% & 61.80% Fibo retracement levels. Commodities trading price is likely to bounce & continue in the original direction after commodities trading price retraces to any of these fan lines.
The Fibonacci Fan Lines are drawn as shown and illustrated below:
Fibonacci Fans on MT4 Platform
Commodities Trading Fibonacci Arcs
Fib arcs are drawn using two chart points, the arcs are then drawn as shown and illustrated below and these arcs represent 38.2%, 50.0% and 61.8% Fibonacci retracement levels.
Fibo Arcs Representing Commodities Fibonacci Retracement Zones on a Commodity Trading Chart
Commodities Trading Fib Expansion
The Fibonacci expansion is used to determine the most probable level at which traders should set their take profit levels based on Fibonacci expansion level 61.8% and 100.0% expansion levels. The Fibonacci expansion levels are also referred to as Commodity Trading Fib Extension Levels or Fibonacci Projection Levels by some traders and these Commodity Trading Fib Extension areas are plotted as shown and illustrated below. Tutorial: How to Draw Commodity Trading Fib Expansion Levels:
How to draw Fibonacci Lines and other Fibonacci studies like Commodity Trading Fibonacci Expansion and Retracement on MT4 Platform
