How to Draw Fibonacci Retracement Areas on MetaTrader 4

XAUUSD Fib Retracement Indicator

To calculate these trading price pullbacks on the chart for example the MetaTrader 4 we use Fibonacci retracement areas indicator as pictured on the image below.

If you want to examine some charts using this Fib retracement line studies tool, it is already provided for in the MT4 software, the following procedure is used to add this Fibonacci retracement tool on the MT4 Software. On MetaTrader 4 platform this fibonacci retracement tool will automatically draw the retracement levels on a chart once it is placed on the chart.

To add this fibonacci retracement technical indicator tool on the MetaTrader 4 platform, you can use the following short-cut method:

1. Click Insert 2. Click Fib 3. Click Retracement

After adding this fibonacci retracement tool on the MetaTrader 4 platform this fibonacci retracement indicator tool can then be accessed from "MT4 Line Studies Tool-Bar" as shown below.

This fibonacci retracement tool is located on MT4 (Line Studies Tool-Bar), to go to this MT4 Line Studies tool-bar click "View" button at tops left corner of MT4 next to file, then click "ToolBars", Then Check the "Line Studies". You can learn how to use Meta Trader 4 Line Studies Tool Bar on the MT4 platform using a practice trade account.

Below is example of the Fibo retracement indicator, we always draw the fibonacci retracement indicator between 2 chart points, point 1 & point 2, in direction of the trend as shown below.

How to Place Fibonacci Retracement on a Chart

To Place this fibonacci retracement tool on a chart, click the button shown above in MT4 platform. Then select 2 chart points, the first point is where the trend starts and the second point is where the trend pull back is starting.