Placing Fibonacci Lines on MT4

The fifth option on the MetaTrader 4 platform insert menu is Fib Lines. Fibonacci Lines Button has the following sub-menu buttons shown below:

Fibonacci Stock Indices in MetaTrader 4

Fibonacci Lines

1. Indices Trading Fib Retracement
2. Stock Indices Trading Fib Time Zones
3. Indices Trading Fib Fan
4. Indices Trading Fib Arcs
5. Indices Trading Fib Expansion

Indices Trading Fib Retracement

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

Fibo Retracement Levels Drawn on a Indices Chart on the MT4 Trading Software

Indices Trading Fibonacci Time Zones

The Fibo time zones are Fibo lines plotted at different Fibo timelines, these Fibo time zones are calculated using Fibo 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 the next, next added to the second & so on.

The Fibo time zones are pictured below, at these time lines price changes are likely to occur based on technical analysis of Fibonacci time zones:

Fibonacci Time Zones in MT4

Stock Indices Trading Fibonacci Fan

The Fib fan is drawn between two chart 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 Fibo Fan Lines are drawn as illustrated and shown below:

Fibo Fans in Meta Trader 4

Stock Indices Trading Fibonacci Arcs

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

Fibonacci Arcs Representing Fibonacci Retracement Zones on a Indices Chart

Stock Indices Trading Fibonacci Expansion

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

How to draw Fibo Lines and other Fibo studies like Fibo Expansion and Retracement in MetaTrader 4