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Use Fibonacci tools

On MetaTrader4 (MT4) / MetaTrader5 (MT5), you can use the technical indicators based on the Fibonacci sequence invented by Leonardo Fibonacci (Italy): "Fibonacci retracement", "Fibonacci time zones", "Fibonacci fan", "Fibonacci arcs", "Fibonacci channel", and "Fibonacci expansion".

Here we'll take a look at how to display and set up the simplest Fibonacci tool, the Fibonacci retracement.

Switch between MT4/MT5 tabs to check the steps for each.

mt4
mt5

Step 1

Fibonacci tools are available from the menu or the Toolbar.

Draw Fibonacci retracement from the menu

Click "Insert" in the menu. Hover the pointer over "Fibonacci" and select "Retracement".

Select Fibonacci Retracement Select Fibonacci Retracement

Draw Fibonacci retracement from the toolbar

Click the "Draw Fibonacci retracement" button in the toolbar.

Click the Draw Fibonacci retracement button in the toolbar Click the Draw Fibonacci retracement button in the toolbar
  1. Fibonacci retracement

    Fibonacci retracement

    Fibonacci retracement is a technical indicator that determines the temporary retrace price. It uses the Fibonacci ratio on the gap between the high and low to determine the dip/rally.

  2. Fibonacci time zones

    Fibonacci time zones

    Fibonacci time zones draw vertical Fibonacci lines relative to the time axis. Use these as reference points to determine when the trend will change.

  3. Fibonacci fan

    Fibonacci fan

    Fibonacci fan uses the trendline and draws 3 separate lines using the Fibonacci ratio. Use these lines as reference points to determine the support line and resistance line.

  1. Fibonacci arcs

    Fibonacci arcs

    Fibonacci arc is a technical indicator that utilizes the Fibonacci ratio on the price gap and time. Connect the high and low and it will draw 3 arcs relative to the end point using the Fibonacci ratio. Use these lines as reference points to determine the support line and resistance line.

  2. Fibonacci expansion

    Fibonacci expansion

    Fibonacci expansion is a technical indicator that determines how long a trend will last. Connect the starting point of the trend and the dip/rally points and it will draw horizontal lines using the Fibonacci ratio. Use these as reference points to determine how far the market will expand.

point Fibonacci channel is under "Channels"

On MT5, you can find the Fibonacci channel in the "Fibonacci" menu, while on MT4, it is in the "Channels" menu.

How to draw the Fibonacci channel How to draw the Fibonacci channel

Step 2

Click the starting point on the chart and drag it to the end point to create the Fibonacci retracement.

Draw Fibonacci retracement on the chart Draw Fibonacci retracement on the chart
point Values displayed during drawing Fibonacci retracement
Values displayed during drawing Fibonacci retracement Values displayed during drawing Fibonacci retracement

Values displayed when dragging indicate the number of candlesticks from the starting point to the end point and the number of points.

Step 3

If you want to adjust the position of the Fibonacci retracement, make sure the white dots are being displayed on the Fibonacci retracement and move each dot as necessary. If you cannot see the white dots, double-click near the Fibonacci retracement to display the white dots.

Adjust the Fibonacci retracement position Adjust the Fibonacci retracement position

Number

Descriptions

1

Change the starting point of the Fibonacci retracement.

2

Change the position of the Fibonacci retracement.

3

Change the end point of the Fibonacci retracement.

Step 4

To modify the Fibonacci retracement settings, right-click on the line connecting the starting and end points and select "Fibo properties...".

Modify the Fibonacci retracement settings Modify the Fibonacci retracement settings

Step 5

On the "Properties" window, edit the parameters in the "Common", "Fibo Levels", "Parameters", and "Visualization" tabs and click "OK".

"Common" tab

Common tab of the Fibonacci retracement Common tab of the Fibonacci retracement

Number

Item name

Descriptions

1

Name

Name the Fibonacci retracement.

2

Description

The description can be displayed on the chart when hovering the pointer over the Fibonacci retracement.

3

Style

Set the color, line type, and line thickness for the Fibonacci retracement.

4

Draw object as background

Check this box if you want to place the Fibonacci retracement behind the chart.

"Fibo Levels" tab

The Fibonacci retracement uses the Fibonacci ratio and draws lines at the 0%, 23.6%, 38.2%, 50%, 61.8%, 100%, 161.8%, 261.8%, and 423.6% marks. If you wish to change these numbers, double-click the number and enter your own value. If you wish to add a line, click "Add" and adjust the value/settings.

Fibo Levels tab of the Fibonacci retracement Fibo Levels tab of the Fibonacci retracement

"Parameters" tab

Parameters tab of the Fibonacci retracement Parameters tab of the Fibonacci retracement

Number

Item name

Descriptions

1

Starting point position

Specify the starting point position by date and price.

2

End point position

Specify the end point position by date and price.

3

Ray

(Not available)

"Visualization" tab

On the "Visualization" tab, you can specify the timeframes to use the Fibonacci retracement with.

Visualization tab of the Fibonacci retracement Visualization tab of the Fibonacci retracement

Step 1

Draw Fibonacci retracement from the menu

Click "Insert" in the menu. Hover the pointer over "Objects" > "Fibonacci" and select "Fibonacci Retracement".

Click Insert in the menu. Hover the pointer over Objects > Fibonacci and select Fibonacci Retracement Click Insert in the menu. Hover the pointer over Objects > Fibonacci and select Fibonacci Retracement

Draw Fibonacci retracement from the toolbar

Click the "Draw Fibonacci retracement" button in the toolbar.

Click the Draw Fibonacci retracement button in the toolbar Click the Draw Fibonacci retracement button in the toolbar
  1. Fibonacci retracement

    Fibonacci retracement Fibonacci retracement

    Fibonacci retracement is a technical indicator that determines the temporary retrace price. It uses the Fibonacci ratio on the gap between the high and low to determine the dip/rally.

  2. Fibonacci time zones

    Fibonacci time zones Fibonacci time zones

    Fibonacci time zones draw vertical Fibonacci lines relative to the time axis. Use these as reference points to determine when the trend will change.

  3. Fibonacci fan

    Fibonacci fan Fibonacci fan

    Fibonacci fan uses the trendline and draws 3 separate lines using the Fibonacci ratio. Use these lines as reference points to determine the support line and resistance line.

  1. Fibonacci arcs

    Fibonacci arcs Fibonacci arcs

    Fibonacci arc is a technical indicator that utilizes the Fibonacci ratio on the price gap and time. Connect the high and low and it will draw 3 arcs relative to the end point using the Fibonacci ratio. Use these lines as reference points to determine the support line and resistance line.

  2. Fibonacci channel

    Fibonacci channel Fibonacci channel

    Fibonacci channel uses the trendline and creates parallel channel lines using the Fibonacci ratio. Use these lines as reference points to determine the break points and when the trend will change.

  3. Fibonacci expansion

    Fibonacci channel Fibonacci channel

    Fibonacci expansion is a technical indicator that determines how long a trend will last. Connect the starting point of the trend and the dip/rally points and it will draw horizontal lines using the Fibonacci ratio. Use these as reference points to determine how far the market will expand.

Step 2

Click the starting point on the chart and drag it to the end point to create the Fibonacci retracement.

Click the starting point on the chart and drag it to the end point to create the Fibonacci retracement Click the starting point on the chart and drag it to the end point to create the Fibonacci retracement
point Values displayed during drawing Fibonacci retracementv
Values displayed during drawing Fibonacci retracement Values displayed during drawing Fibonacci retracement

Values displayed when dragging indicate the number of candlesticks from the starting point to the end point, the number of points, and the angle of the Fibonacci retracement.

Step 3

If you want to adjust the position of the Fibonacci retracement, make sure the white dots are being displayed on the Fibonacci retracement and move each dot as necessary. If you cannot see the white dots, double-click near the Fibonacci retracement to display the white dots.

Make sure the white dots are being displayed on the Fibonacci retracement Make sure the white dots are being displayed on the Fibonacci retracement

Number

Descriptions

1

Change the starting point of the Fibonacci retracement.

2

Change the position of the Fibonacci retracement.

3

Change the end point of the Fibonacci retracement.

Step 4

To modify the Fibonacci retracement settings, right-click near the Fibonacci retracement and select "Properties of (Fibonacci name)".

Right-click near the Fibonacci retracement and select Properties of (Fibonacci name Right-click near the Fibonacci retracement and select Properties of (Fibonacci name

Step 5

On the "Properties" window, edit the parameters in the "Common", "Levels", "Parameters", and "Visualization" tabs and click "OK".

"Common" tab

Common tab Common tab

Number

Item name

Descriptions

1

Name

Name the Fibonacci retracement.

2

Description

The description of the Fibonacci retracement can be displayed on the chart.
Related article: Show or hide items on chart

3

Style

Set the color, line type, and line thickness for the Fibonacci retracement.

4

Draw object as background

Check this box if you want to place the Fibonacci retracement behind the chart.

5

Disable selection

Check this box if you want to disable the editing of the Fibonacci retracement.

"Levels" tab

The Fibonacci retracement uses the Fibonacci ratio and draws lines at the 61.8%, 100%, 161.8%, 261.8%, and 423.6% marks. If you wish to change these numbers, double-click the number and enter your own value. If you wish to add a line, click "Add" and adjust the value/settings.

Levels tab Levels tab

"Parameters" tab

Parameters tab Parameters tab

Number

Item name

Descriptions

1

Starting point position

Specify the starting point position by date and price.

2

End point position

Specify the end point position by date and price.

3

Ray

Check each box to extend the Fibonacci retracement to the left and right.

When "Ray right" is checked

When Ray right is checked When Ray right is checked

When "Ray left" is checked

When Ray left is checked When Ray left is checked

"Visualization" tab

On the "Visualization" tab, you can specify the timeframes to use the Fibonacci retracement with.

Visualization tab Visualization tab

Date

Created

 : 2022.09.09

Update

Last updated

 : 2022.11.02

Writer

Takayoshi Nakamaru

Manual production consultant, MBA

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Takayoshi Nakamaru

Nakamaru is a manual production consultant at FINTECS, a company that specializes in creating manuals for their clients.
With a wide range of experience from fintech to entertainment, he presents what user-friendly manuals should be like.
He works with numerous large corporations as an external manual production project manager.

【Business information】
http://www.fintecs.co.jp/profile/

Supervisor

Akira Takagi

Systems engineer, MetaTrader administrator

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Akira Takagi

After graduating from Computer Science at the Uninove, Brazil, in 2014, he has worked on various systems development projects.
He participated as a developer in the launch of forex services in 2019. Since then, he has also been involved in the development of MetaTrader plugins and APIs. He is certified by MetaQuotes as a MetaTrader5 Administrator and active in consulting and advisory as well.

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