Placing Fibonacci Lines in MetaTrader 5 Platform
The fifth option on the MT5 cfds trading platform insert menu is Fib Lines. The Fibonacci Lines Button has the following submenu MT5 button keys shown below:
Fibonacci CFDs on MT5 Platform
Fibonacci Lines
- CFDs Fib Retracement
- CFDs Trading Fib Time Zones
- CFDs Trading Fib Fan
- CFDs Trading Fib Arcs
- CFDs Fibonacci Expansion
CFDs Fib Retracement
The Fib retracement can be placed on a CFD chart from the Fibonacci retracement button. Fib retracement is used to estimate where a cfd price retracement is likely to reach. The Fib retracement levels are drawn as illustrated and shown below. To learn how to draw and use CFDs Fibonacci Retracement Levels read the tutorial: How to draw CFDs Fibonacci Retracement Levels:
CFDs Fibonacci Retracement Levels Drawn on a CFDs Chart on MT5 Platform
CFDs Trading Fib Time Zones
The Fib time zones are Fib lines drawn at different Fibo timelines, these Fib time zones are calculated using Fib points 1, 2, 3, 5, 8, 13, 21, 34. The Fib levels are 1+2=3, 2+3=5, 3+5=8, first number add to the next, the next added to the second and so on.
The Fibonacci time zones are shown below, at these time lines cfds price changes are likely to occur based on cfd technical analysis of Fibonacci time zones:
Fibonacci Time Zones on MT5 Platform
CFDs Trading Fib Fan
The Fibonacci fan is drawn between 2 chart points and then 3 additional lines below the cfd trend are drawn as the fans, these are 38.20%, 50.0% & 61.80% Fibo retracement levels. Cfds price is likely to bounce & continue in the original direction after cfds price retraces to any of these fan lines.
The Fib Fan Lines are drawn as illustrated & shown below:
Fibonacci Fans on MetaTrader 5 Platform
CFDs Trading Fibonacci Arcs
Fib arcs are drawn using two chart points, the arcs are then drawn as illustrated and shown below and these arcs represent 38.2%, 50.0% and 61.8% Fib retracement levels.
Fibonacci Arcs Representing CFDs Fibonacci Retracement Zones on a CFD Chart
CFDs 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% and 100.0% expansion levels. The Fib expansion levels are also referred to as CFD Fibonacci Extension Levels or Fibonacci Projection Levels by some traders and these CFD Fibonacci Extension areas are drawn as shown below. Tutorial: How to Draw CFD Fibonacci Expansion Levels:
How to draw Fibo Lines and other Fibo studies like CFD Fibonacci Expansion and Retracement on MetaTrader 5 Platform
