Placing Fibonacci Lines in the MT4

The 5th option on the MetaTrader 4 software insert menu is Fib Lines. Fibonacci Lines Button has the following sub menu buttons shown below:

Fib Stock Index on MetaTrader 4

Fib Lines

Index Fib Retracement
Stock Indices Fib Time Zones
Index Fib Fan
Index Fib Arcs
Index Fib Expansion

Index Fibonacci Retracement

The Fib retracement can be placed on a trading chart from the Fibonacci retracement button. Fibo retracement is used to try to project where a price pull back is likely to reach. The Fibonacci retracement levels are drawn as is illustrated & shown below. To learn how to draw & use Fib Retracement Levels read the article: How to draw Fibonacci Retracement Levels:

Fibo Retracement Levels Drawn on a Chart on the MetaTrader 4 Platform

Index Fibonacci Time Zones

The Fib time zones are Fibonacci lines plotted at different Fibonacci timelines, these Fibonacci time areas are calculated using Fibonacci points 1, 2, 3, 5, 8, 13, 21, 34. The Fibo areas are 1+2=3, 2+3=5, 3+5=8, first number add to next, next added to the second and so on.

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

Fib Time Zones on MT4

Stock Indices Fibonacci Fan

The Fibo fan is drawn between 2 points & then three additional lines below the trend are plotted as the fans, these are 38.2%, 50.00% and 61.80% Fibonacci retracement levels. Stock price is likely to bounce & continue in the original direction after price retraces to any of these fan lines.

The Fib Fan Lines are drawn like as shown & displayed below:

Fibo Fans on MT4 Platform

Indices Fibonacci Arcs

Fibonacci arcs are drawn using two chart points, the arcs are then drawn like illustrated and displayed below and these arcs represent 38.2 %, 50.0% & 61.8% Fibo retracement levels.

Fib Arcs Representing Fibonacci Retracement Zones on a Trading Chart

Indices Fibonacci Expansion

The Fib expansion is used to determine most probable level at which traders should set their take profit levels based on Fib expansion level 61.8% & 100.0% expansion levels. The Fibonacci expansion levels are also referred to as Fib Expansion Levels or Fibonacci Projection Levels by some traders and these Fibonacci Extension areas are plotted as is shown below. Tutorial: How to Draw Fibonacci Expansion Levels:

How to draw Fibo Lines and other Fibo studies like Fibonacci Expansion and Retracement in MT4 Platform

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