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Placing Fibonacci Lines on MT5

The fifth option on the MT5 stock indexes trading platform insert menu is Fibonacci Lines. The Fibonacci Lines Button has the following sub menu MetaTrader 5 buttons shown below:

Placing Fibonacci Lines on MT5

Fibonacci Indices Trading on MT5


Fibonacci Lines


  1. Indices Trading Fibonacci Retracement

  2. Fibonacci Time Zones

  3. Fibonacci Fan

  4. Fibonacci Arcs

  5. Indices Trading Fibonacci Expansion


Indices Trading Fibonacci Retracement

The Fibonacci retracement can be placed on the a Indices Trading chart from the Fibonacci retracement button. Fibonacci retracement is used to estimate where a indices price retracement is likely to reach. The Fibonacci retracement levels are drawn as shown below. To learn how to draw and use Indices Trading Fibonacci Retracement Levels read the tutorial: How to draw Indices Trading Fibonacci Retracement Levels:

Placing Indices Trading Fibonacci Retracement Indicator on MT5 Indices Chart

Indices Trading Fibonacci Retracement Levels Drawn on a Indices Trading Chart on The MT5 Indices Trading Platform


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 and so on.



The Fibonacci time zones are shown below, at these time lines stock indexes price changes are likely to occur based on stock indexes trading technical analysis of Fibonacci time zones:

Placing Fibonacci Time Zones on Stock Indexes Charts in MT5

Fibonacci Time Zones on MetaTrader 5


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Fibonacci Fan

The Fibonacci fan is drawn between two chart points and then three additional lines below the indices trend are drawn as the fans, these are 38.2%, 50.0% and 61.8% Fibonacci retracement levels. The stock indexes price is likely to bounce and continue in the original direction after stock indexes price retraces to any of these fan lines.


The Fibonacci Fan Lines are drawn as shown below:

Placing Fibonacci Fan Lines on Stock Indexes Charts in MT5

Fibonacci Fans on MT5


Fibonacci Arcs

Fibonacci arcs are drawn using two chart points, the arcs are then drawn as shown below and these arcs represent 38.2%, 50.0% and 61.8% Fibonacci retracement levels.

Placing Fibonacci Arcs on Stock Indexes Charts in MT5

Fibonacci Arcs Representing Indices Trading Fibonacci Retracement Zones on a Indices Trading Chart


Indices 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 Indices Trading Fibonacci Extension Levels or Fibonacci Projection Levels by some traders and these Indices Trading Fibonacci Extension levels are drawn as shown below. Tutorial: How to Draw Indices Trading Fibonacci Expansion Levels:

Placing Indices Trading Fibonacci Expansion Lines on Stock Indexes Charts in MT5

How to draw Fibonacci Lines and other Fibonacci studies like Indices Trading Fibonacci Expansion and Retracement on MT5


 

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