Placing Fibonacci Lines on MT4

The 5th 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

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

Indices Fib 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 pullback is likely to reach. The Fib retracement levels are drawn as illustrated and shown below. To learn how to draw & use Fib Retracement Levels read the article: 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 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:

Fibonacci Time Zones in MetaTrader 4

Stock Indices Fibonacci Fan

The Fibo fan is drawn between two 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 shown & displayed below:

Fibo Fans in MetaTrader 4

Stock Indices Fibonacci Arcs

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

Fibonacci Arcs Representing Fibonacci Retracement Zones on a Trading 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 Expansion Levels:

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

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