Placing Fibo Lines on MetaTrader 4
The fifth option on the MT4 platform insert menu is Fibonacci Lines. Fibonacci Lines Button Key has the following submenu buttons shown below:
Fibonacci on MT4
Fibonacci Lines
- BTCUSD Fibo Retracement
- BTCUSD Fib Time Zones
- BTCUSD Fibo Fan
- BTCUSD Fibo Arcs
- BTCUSD Fib Expansion
BTCUSD Fibo Retracement
The Fibo retracement can be placed on the a Bitcoin chart from the Fibonacci retracement button. Fib retracement is used to estimate where a bitcoin price retracement is likely to reach. The Fibonacci retracement levels are drawn as illustrated & shown below. To learn how to draw & use Fibo Retracement Levels read the guide: How to draw Fibonacci Retracement Levels:
Fibo Retracement Levels Drawn on a Bitcoin Chart on the MT4 Platform
BTCUSD Fibo Time Zones
The Fibonacci time zones are Fibo lines drawn at different Fib timelines, these Fibonacci time zones are calculated using the Fibo points 1, 2, 3, 5, 8, 13, 21, 34. The Fibonacci 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 Fibo time zones are pictured below, at these time lines bitcoin price changes are likely to occur based on technical analysis of Fibo time zones:
Fibonacci Time Zones in MT4
BTCUSD Fib Fan
The Fibonacci fan is drawn between two chart points and then three additional lines below the bitcoin trend are plotted as the fans, these are 38.2%, 50.00% & 61.80% Fibo retracement levels. Bitcoin price is likely to bounce & continue in the original direction after bitcoin price retraces to any of these fan lines.
The Fibo Fan Lines are drawn as illustrated & shown below:
Fibonacci Fans in MT4
BTCUSD Fibo Arcs
Fibo arcs are plotted using two chart points, the arcs are then drawn as illustrated and shown below & these arcs represent 38.2%, 50.0% & 61.8% Fib retracement levels.
Fibonacci Arcs Representing Fibo Retracement Zones on a Bitcoin Chart
Bitcoin Trading Fibonacci Expansion
The Fibonacci expansion is used to determine the most probable level at which traders should set their take profit levels based on Fibo expansion level 61.8% & 100.0% expansion levels. The Fibo extension levels are also referred to as Fibonacci Expansion Levels or Fibo Projection Levels by some traders & these Fibo Extension areas are plotted as shown below. Tutorial: How to Draw Fibonacci Extension Levels:
How to draw Fib Lines and other Fib studies like Fibo Expansion and Retracement on MT4
