Placing Fibonacci Lines on MT4 Software
The fifth option on the MT4 stocks trading platform insert menu is Fibonacci Lines. Fib Lines Button Key has the following sub-menu buttons shown below:
Fibonacci Stocks Trading in MetaTrader 4 Platform
Fib Lines
- Stock Trading Fibonacci Retracement
- Stocks Trading Fib Time Zones
- Stocks Trading Fib Fan
- Stocks Trading Fib Arcs
- Stock Trading Fibonacci Expansion
Stocks Trading Fib Retracement
The Fibonacci retracement can be placed on the a Stock chart from the Fibonacci retracement button. Fibonacci retracement is used to estimate where a stock price retracement is likely to reach. The Fibonacci retracement levels are drawn as illustrated and shown below. To learn how to draw & use Stock Fib Retracement Levels read the tutorial: How to draw Stock Trading Fibo Retracement Levels:
Stock Trading Fibo Retracement Levels Drawn on a Stock Chart in MetaTrader 4 Software
Stocks Trading Fib Time Zones
The Fib time zones are Fibo lines drawn at different Fib timelines, these Fibo time zones are calculated using the 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, next added to the second and so on.
The Fibonacci time zones are shown below, at these time lines stocks price changes are likely to occur based on technical analysis of Fibonacci time zones:
Fibonacci Time Zones on MT4 Platform
Stocks Trading Fibonacci Fan
The Fibonacci fan is drawn between two chart points and then three additional lines below the stock trend are drawn as the fans, these are 38.20%, 50.0% and 61.80% Fibonacci retracement levels. Stocks price is likely to bounce & continue in the original direction after stocks price retraces to any of these fan lines.
The Fibo Fan Lines are drawn as illustrated & shown below:
Fibonacci Fans on MT4 Platform
Stocks Trading Fib Arcs
Fibonacci arcs are drawn using two chart points, the arcs are then drawn as illustrated & shown below & these arcs represent 38.2%, 50.0% and 61.8% Fibonacci retracement levels.
Fibo Arcs Representing Stock Fibonacci Retracement Zones on a Stock Chart
Stocks Trading 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% and 100.0% expansion levels. The Fibonacci expansion levels are also referred to as Stock Trading Fibo Extension Levels or Fibo Projection Levels by some traders & these Stock Fibonacci Extension areas are drawn as illustrated and shown below. Guide: How to Draw Stock Fibonacci Expansion Levels:
How to draw Fibonacci Lines and other Fibonacci studies like Stock Trading Fibonacci Expansion and Retracement on MT4 Platform
