How to Draw Fibonacci Retracement Levels on MetaTrader 4 Software
To calculate these price pullbacks on the XAUUSD price chart for example the MT4 software we use Fib retracement levels tool/indicator as illustrated on the image screenshot below.
If you want to analyze some Gold price charts using this tool, it is already provided for in the MT4 platform, the following procedure is used to add this tool on the MetaTrader 4 Software. On the MT4 this Fibonacci retracement tool will automatically draw the retracement levels on a price chart once this indicator is placed on the Gold price chart.
To add this tool on the MetaTrader 4 software, you can use the following short cut method:
- Click Insert
- Click Fibonacci
- Press Retracement
After adding this Fib retracement levels indicator on the MT4 platform this technical indicator then can be accessed from "MT4 Line Studies Tool Bar" as shown below.
This Fibonacci retracement tool is located on MetaTrader 4 ("Line Studies Tool-Bar"), to go to this toolbar click "View" at the left top corner of MetaTrader 4 next to file, then click "Tool Bars", Then Check "Line Studies". You can learn how to use Fibonacci retracement tool on the MetaTrader 4 using a demo practice demo account.
Below is an illustration of the Fib retracement tool, we always plot the trading indicator between two points, point 1 & point 2, in the direction of the XAUUSD price trend as illustrated below.
Fib Retracement Levels
How Do I Draw Fib Retracement Levels between Two Points
How to Place Fibonacci Retracement on a XAUUSD Price Chart
To Place this Fibonacci Retracement Levels tool on a price chart, press the button shown above on the MetaTrader 4 platform. Then select 2 chart points, the first point is where the trend starts and the second point is where the trend pull-back starts.
To adjust this trading indicator just doubleclick on it and adjust points will appear on the point 1 & 2 - shown as small squares, click and hold your mouse button to move these points to where you as the trader want them to be placed precisely. You can practice using this Fibonacci Retracement Levels tool by using a practice Gold trading demo account.
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