How to Draw Fibonacci Retracement Areas Technical Indicator in MT4

MT4 Trading Platform Line Studies ToolBar - Fibonacci Retracement Indicator

To calculate these price pullbacks on the forex chart for example the MT4 we use Fibonacci retracement levels tool/indicator as shown on the image below.

If you want to analyze some forex 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 MetaTrader 4 Software. On The MT4 software this fibonacci retracement tool will automatically draw the retracement levels on a forex chart once it is placed on the chart.

To add this fibonacci retracement technical indicator tool on the MT4 platform, you can use the following short cut technique:

1. Click Insert 2. Click Fibonacci 3. Click Retracement

After adding this fibonacci retracement tool on the MT4 software this fibonacci retracement indicator can then be accessed from 'MetaTrader 4 Line Studies Tool Bar' as illustrated below.

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

Shown Below is an example of the Fibonacci retracement tool, we always draw the fibonacci retracement indicator between two chart points, point 1 and point 2, in direction of the Forex trend as shown below.

How to Place Fibonacci Retracement on a Chart

To Place this fibonacci retracement tool on a forex chart, click on the button shown above on the MT4 software. Then select 2 chart points, the first point is where the forex trend starts and the second point is where the trend pull back is starting.