Placing Fib Lines on MT4
The 5th option on the MetaTrader 4 software insert menu is Fibonacci Lines. Fib Lines Button has the following sub-menu buttons illustrated below:
Fibonacci in MetaTrader 4
Fibonacci Lines
- XAUUSD Fib Retracement
- Gold Fib Time Zones
- Gold Fib Fan
- Gold Fib Arcs
- XAUUSD Fib Expansion
XAUUSD Fibonacci Retracement
The Fibo retracement can be placed on the a chart from the Fibonacci retracement button. Fib retracement is used to estimate where a trading price retracement is likely to reach. The Fibo retracement areas are plotted as cited below. To learn how to draw & use Fib Retracement Levels read the guide: How to draw Fib Retracement Levels:
Fib Retracement Levels Drawn on a Chart on the MT4 Software
XAUUSD Fibonacci Time Zones
The Fibonacci time zones are Fib lines drawn at different Fibonacci timelines, these Fib time zones are calculated using the Fibonacci 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 Fib time zones are shown below, at these time lines price changes are likely to occur based on analysis of Fibonacci time zones:
Fibonacci Time Zones in MetaTrader 4
XAUUSD Fib Fan
The Fibo fan is drawn between two chart points & then three additional lines below the market trend are plotted as the fans, these are 38.2%, 50.00% & 61.80% Fib retracement levels. Xauusd trading price is likely to bounce and continue in the original direction after price retraces to any of these fan lines.
The Fib Fan Lines are drawn as shown below:
Fibo Fans on MetaTrader 4
XAUUSD Fib Arcs
Fibonacci arcs are plotted using 2 chart points, the arcs are then drawn as shown below & these arcs represent 38.2%, 50.0% & 61.8% Fibonacci retracement levels.
Fibo Arcs Representing Fib Retracement Zones on a Chart
XAUUSD Fibonacci Expansion
The Fib expansion is used to determine the most probable level at which traders should set their take profit levels based on Fib expansion level 61.8% & 100.0% expansion levels. The Fibo expansions are also referred to as Fib Extension Levels or Fib Projection Levels by some traders & these Fibo Extension areas are drawn as shown below. Tutorial: How to Draw Fibo Expansion Levels:
How to draw Fibonacci Lines and other Fibonacci studies like Fibo Expansion and Retracement in MetaTrader 4
