Trade Stock Indices

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:

Placing Fib Lines on MT4 Platform Software - Placing Fib Lines on MetaTrader 4 Charts - Fib Retracements Tool

Fib Stock Index on MetaTrader 4

Fib Lines

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

Index Fibonacci Retracement

The Fib retracement can be placed on a trading chart from the Fib 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:

Placing Fib Retracement Areas Technical Indicator in Stock Index MT4 Chart

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

Index Fibonacci Time Zones

The Fib time levels are Fib lines marked on a chart at different Fibonacci times: these Fibonacci time areas are found using Fibonacci numbers 1, 2, 3, 5, 8, 13, 21, 34. The Fibo areas are 1+2=3, 2+3=5, 3+5=8, the first number plus the next, and so on.

Fibonacci time zones appear below. Price shifts often happen at these lines based on Fib analysis.

Placing Fibonacci Time Zones on Charts on the MT4 Platform - Placing Fibonacci Lines in MetaTrader 4 Charts

Fib Time Zones on MT4

Stock Indices Fibonacci Fan

The Fibonacci fan is drawn between two predetermined points, after which three supplementary lines, representing the 38.2%, 50.00%, and 61.80% Fibonacci retracement levels, are projected downward from the trend line as fan lines. Stock prices frequently reverse course at these fan lines and continue along the initial trajectory following a retracement to one of them.

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

Placing Fib Fan Lines on Charts on the MT4 Platform - Placing Fib Lines on MetaTrader 4 Charts

Fibo Fans on MT4 Platform

Indices Fibonacci Arcs

To draw Fibonacci arcs, you pick two points on the chart. The arcs show up as you see below, marking the 38.2%, 50.0%, and 61.8% Fibonacci retracement levels.

Placing Fibonacci Arcs on Charts on the MetaTrader 4 - Placing Fibonacci Lines in MetaTrader 4 Charts

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:

Placing Fibonacci Expansion Lines on Charts on MT4

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

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