Placing Fib Lines on MT4
The fifth option on the MetaTrader 4 software insert menu is Fib Lines. Fibonacci Lines Button has the following sub-menu buttons shown below:
Fibonacci XAUUSD in MetaTrader 4
Fibonacci Lines
- XAUUSD Trading Fibonacci Retracement
- XAUUSD Trading Fib Time Zones
- XAUUSD Trading Fibonacci Fan
- XAUUSD Trading Fibonacci Arcs
- XAUUSD Trading Fib Expansion
XAUUSD Trading Fibonacci Retracement
The Fibo retracement can be placed on the a Gold chart from the Fibonacci retracement button. Fib retracement is used to estimate where a xauusd trading price retracement is likely to reach. The Fibo retracement areas are plotted as cited below. To learn how to draw & use Fibo Retracement Levels read the guide: How to draw Fibo Retracement Levels:
Fib Retracement Levels Drawn on a Gold Chart on the MT4 Software
XAUUSD 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, the next added to the second & so on.
The Fibo time zones are pictured below, at these time lines xauusd price changes are likely to occur based on analysis of Fibonacci time zones:
Fibonacci Time Zones in MT4
XAUUSD Trading Fib Fan
The Fib fan is drawn between two chart points & then three additional lines below the gold trend are plotted as the fans, these are 38.2%, 50.00% and 61.80% Fibonacci retracement levels. Xauusd trading price is likely to bounce & continue in the original direction after xauusd price retraces to any of these fan lines.
The Fib Fan Lines are drawn as illustrated below:
Fibo Fans on MetaTrader 4
XAUUSD Trading Fib Arcs
Fibonacci arcs are plotted using 2 chart points, the arcs are then drawn as shown below & these arcs represent 38.2%, 50.0% & 61.8% Fib retracement levels.
Fibo Arcs Representing Fib Retracement Zones on a Gold Chart
Gold 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 Fib expansion level 61.8% & 100.0% expansion levels. The Fibo expansions are also referred to as Fib Extension Levels or Fib Projection Levels by some traders & these Fibo Extension areas are drawn as shown below. Tutorial: How to Draw Fibo Expansion Levels:
How to draw Fibonacci Lines and other Fibonacci studies like Fibo Expansion and Retracement in MetaTrader 4