How to Draw Stock Trading Fibonacci Retracement Levels on MT4
Stock Trading Fibonacci Retracement Indicator
To calculate these stocks price pullbacks on the stock chart for example the MT4 we use Fibonacci retracement levels tool/indicator as shown on the image below.
If you want to analyze some stock charts using this Fibonacci retracement line studies tool, it is already provided for in the MetaTrader 4 stocks trading platform, the following procedure is used to add this Fibonacci retracement tool on the MT4 Stock Trading Software. On The MetaTrader 4 stocks trading platform this fibonacci retracement tool will automatically draw the retracement levels on a stock chart once it is placed on the Stock chart.
To add this fibonacci retracement indicator tool on the MT4 stocks trading platform, you can use the following shortcut method:
1. Click Insert
2. Click Fibonacci
3. Click Retracement
After adding this fibonacci retracement tool on the MetaTrader 4 stocks trading platform this fibonacci retracement stock indicator can then be accessed from "MT4 Line Studies Tool Bar" as shown below.
This fibonacci retracement tool is located on MT4 (Line Studies Toolbar), to go to this MT4 Line Studies tool bar click "View" at the top left corner of MT4 next to file, then click "Toolbars", Then Check "Line Studies". You can learn how to use MT4 Line Studies Tool Bar on the MT4 stocks trading platform using a demo practice account.
Below is an example of the Fibonacci retracement tool, we always draw the fibonacci retracement indicator between two chart points, point 1 and point 2, in the direction of the stock trend as shown below.
How To Place Stock Trading Fibonacci Retracement on a Stock Trading Chart
To Place this fibonacci retracement tool on a stocks trading chart, click on the button shown above on the MT4 stock trading software. Then select 2 chart points, the first point is where the stock trend starts and the second point is where the stock trend pull back is starting.