Placing Fibonacci Lines on MT4 Platform
The fifth option on the MT4 Forex platform insert menu is Fib Lines. Fibonacci Lines Button has the following submenu button keys shown below:
Fibonacci Forex in MT4 Software
Fib Lines
- FX Trading Fibonacci Retracement
- FX Trading Fibonacci Time Zones
- Forex Trading Fib Fan
- Forex Trading Fib Arcs
- Forex Trading Fib Expansion
Forex Trading Fib 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 price retracement is likely to reach. The Fibonacci retracement levels are drawn as shown and illustrated below. To learn how to draw & use Fibonacci Retracement Levels read the tutorial: How to draw Fibonacci Retracement Levels:
Fibonacci Retracement Levels Drawn on a Forex Chart on The MT4 Platform
Forex 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 & so on.
The Fibonacci time zones are shown below, at these time lines price changes are likely to occur based on technical analysis of Fibonacci time zones:
Fibonacci Time Zones in MT4
Forex Trading Fibonacci Fan
The Fib fan is drawn between two chart points & then three additional lines below the trend are drawn as the fans, these are 38.2%, 50.0% & 61.80% Fibo retracement levels. Price is likely to bounce & continue in the original direction after price retraces to any of these fan lines.
The Fibo Fan Lines are drawn as shown and illustrated below:
Fibonacci Fans in MT4
Forex Trading Fib Arcs
Fib 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.
Fibonacci Arcs Representing Fibonacci Retracement Zones on a Chart
Forex 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% and 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 areas are plotted as shown below. Tutorial: How to Draw Fibonacci Expansion Levels:
How to draw Fibonacci Lines and other Fibonacci studies like Fibonacci Expansion and Retracement in MT4
