How to add the Fibonacci indicator to MT4

BlogJune 17, 2022

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Forex traders need to use many different methods to make the correct entry decision. One of the popular ways to help traders accurately identify support/resistance levels and thereby provide potential price movements is by using Fibonacci. The following article will introduce you to the Fibonacci tool and how to use Fibonacci levels in forex trading effectively.

What is a Fibonacci level?

Fibonacci is a series of proportional numbers discovered by an Italian mathematician. This Fibonacci sequence describes the natural proportions of all things in the universe.

The ratios arise from the following sequence of numbers: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144…

This sequence of numbers is derived by starting with 0 followed by 1 and then adding 0 + 1 to get 1, the third number. Then add the second and third numbers (1 + 1) to get 2, 1 + 2 to get 3, 2 + 3 to get 5…

In particular, ignoring the first few numbers in the sequence, the ratio of the two numbers next to each other is always 0.618 (Ex: 21/34, 34/55, 55/89…), and the ratio of the first 2 numbers and the last in a sequence of 3 consecutive numbers will be 0.382 (Example: 13/34, 21/55, 34/89…)

How to add the Fibonacci indicator to MT4

These are considered the golden ratio, which occurs very commonly in nature. In particular, this ratio applied in technical analysis of financial markets is prevalent, and suitable for all different time frames.

How to draw Fibonacci in MT4

First, we will go to Menu Insert -> Fibonacci -> Fibonacci Retracement as shown:

Draw a Fibonacci Retracement in an uptrend: Identify Swing High and Swing Low. Set the beginning of the Fibonacci Retracement at Swing Low and drag to Swing High.

Draw a Fibonacci Retracement in an Uptrend
Draw a Fibonacci Retracement in a downtrend: Identify Swing High and Swing Low. Set the beginning of the Fibonacci Retracement at Swing High and drag to Swing Low.
Draw a Fibonacci Retracement in a downtrend
Set parameters and display prices for Fibonacci Retracement levels
To display the table of Fibonacci parameters, right-click on the Fibonacci line and then select Fibonacci Properties:

A table of Fibonacci parameters will appear with four tabs: Common, Fibo Levels, Parameters, Visualization

Fibonacci Common Properties
The Common Tab Common parameter items are as follows:
Part Name: Can be set or not. It is an identifier of which area Fibonacci is drawing in.

Description: Not required.

Style part: The Fibo diagonal connects Swing Low to Swing High. Here choose dark orange. The second frame in the Style is that you will decide whether it is a solid line or a dashed line…. The last frame is the dark and light level of this Fibo line.

Fibo Levels and Show Specific Prices for Fibonacci Levels
In this Tab, there are a few key points to note:

Level: Fibo Levels

Description: Displays descriptions, level names out of the Chart, etc.

Add: Add Fibonacci level

Delete: Delete an existing Fibo level

Defaults: Restore defaults.

Style: Display horizontal lines proportional to Fibo levels, color, line type (solid or broken), and Line size (Thick, thin…)

The Fibonacci drawing tool in MetaTrader 4 does not display the price level.

To add price display of Fibo levels, you need to add %$ right after the Description in Fibo Levels as shown below:

Show prices for Fibonacci levels in MetaTrader

Ok. Now you have seen the specific costs for the Fibonacci levels.

FIBONACCI PARAMETERS

Fibonacci Parameters are parameters of Swing High – Swing Low points displayed with specific numbers and the date and time of reaching those Swing High – Swing Low levels.
If you like round numbers, you can also change them here. For example: Change Swing High to 147.80 and Swing Low to 146.30 for instance, to get excellent numbers <3

2.4. Fibonacci Visualization

This area allows you to choose whether to display the Fibonacci Retracement that you are drawing WHEN TRANSFER TO OTHER TIMEFRAME it is displayed or not.

Usually, when drawing a Fibonacci Retracement at D1 and then switching to M1, it zooms to a large size and does not go into any level, so if you pull at D1, it should only appear at H4 or most H1.

If so,: Uncheck Show on all the timeframes, then tick D1, H4, H1
After completing the settings, You need to click OK it will update to the current Chart. And these settings can be saved when you next draw the Fibonacci Retracement.

Above are all detailed instructions on how to set the parameters for the Fibonacci Retracement in MetaTrader 4 and how to display specific prices on the Fibonacci levels.

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