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 MT4

Fibonacci Lines

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

Indices Fib Retracement

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

Fibo Retracement Levels Drawn on a Chart on the MT4 Software

Indices Fibonacci Time Zones

The Fibonacci time zones are Fibonacci lines plotted at different Fibonacci timelines, these Fibonacci time zones 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 & so on.

The Fibonacci time zones are illustrated 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 Fibonacci Fan

The Fibo 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 Fibonacci Fan Lines are drawn as illustrated and shown below:

Fibo Fans in Meta Trader 4

Stock Indices 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 Chart

Stock Indices Fibonacci Expansion

The Fibonacci expansion is used to determine most probable level at which traders should set their take profit levels based on Fibonacci expansion level 61.8% & 100.0% expansion levels. The Fibonacci 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 Fib Extension Levels:

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