Placing Fibonacci Lines on MT5 Platform
The fifth option on the MT5 Forex platform insert menu is Fibonacci Lines. The Fibonacci Lines Button has the following sub menu MT5 buttons shown below:
Fibonacci Forex in MT5 Software
Fibonacci Lines
- FX Trading Fibonacci Retracement
- FX Trading Fib Time Zones
- Forex Trading Fibonacci Fan
- FX Trading Fibonacci Arcs
- FX Trading Fibonacci Expansion
FX Trading Fibonacci Retracement
The Fibonacci retracement can be placed on the a Forex chart from the Fibonacci retracement button. Fibonacci retracement is used to estimate where a forex trading price retracement is likely to reach. The Fibonacci retracement levels are drawn as shown & illustrated below. To learn how to draw and use Fibonacci Retracement Levels read the tutorial: How to draw Fibonacci Retracement Levels:
Fibonacci Retracement Levels Drawn on Forex Chart on The MT5 Forex Platform
FX Trading Fibonacci 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 forex trading price changes are likely to occur based on forex technical analysis of Fibonacci time zones:
Fibonacci Time Zones in MT5 Software
FX Trading Fibonacci Fan
The Fib fan is drawn between 2 chart points & then 3 additional lines below the forex trend are drawn as the fans, these are 38.20%, 50.0% and 61.80% Fibonacci retracement levels. Forex trading price is likely to bounce & continue in the original direction after forex trading price retraces to any of these fan lines.
The Fibo Fan Lines are drawn as shown and illustrated below:
Fibonacci Fans in MT5
FX Trading Fibonacci Arcs
Fibonacci arcs are drawn using two chart points, the arcs are then drawn as shown & illustrated below & these arcs represent 38.2%, 50.0% & 61.8% Fibonacci retracement levels.
Fibo Arcs Representing Fibonacci Retracement Zones on a Chart
FX Trading Fibonacci 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% & 100.0% expansion levels. The Fibonacci expansion levels are also referred to as Fibonacci Extension Levels or Fibonacci Projection Levels by some traders and these Fibonacci Extension levels are plotted as shown below. Tutorial: How to Draw Fibonacci Expansion Levels:
How to draw Fibonacci Lines & other Fibonacci studies like Fibonacci Expansion and Retracement in MetaTrader 5
