How to Draw Fibonacci Retracement Areas on MT4

MetaTrader 4 Line Studies Tool Bar

To calculate these price pull backs on the chart for example the MT4 we use Fibo retracement areas indicator as pictured on the shot below.

If you want to examine some charts using this Fibonacci retracement line studies tool, it is already provided for in the MetaTrader 4 platform, the following procedure is used to add this Fibonacci retracement tool on the MT4 Platform. On MetaTrader 4 platform this fibonacci retracement tool will automatically draw the retracement levels on a chart once it's placed on the Indices chart.

To add this fibonacci retracement technical indicator tool on the MetaTrader 4 software, you can use the following short-cut method:

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

After adding this fibonacci retracement tool on the MT4 software this fibonacci retracement technical indicator tool can then be accessed from "MT4 Line Studies Tool-Bar" as displayed below.

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

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

How to Place Fibo Retracement on a Indices Chart

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