Introduction to Fibonacci Trading

Discussion in 'Fibonacci Trading' started by Kaitlin, Sep 15, 2015.

  1. Kaitlin

    Kaitlin Forum Member

    Aug 29, 2015
    Likes Received:
    This article is all about Fibonacci trading which is considered one of the best methods for finding out forex support resistance levels. So let’s come straight to the topic.

    How To Insert Fibonacci Levels On Forex Chart?

    Inserting Fibonacci levels on forex charts is very simple, mt4 and mt4 software provide a built-in tool for this purpose. All you need is to select Fibonacci Retracement tool by selecting a symbol with dotted lines and F alphabet as demonstrated in the following chart.


    Once you click on the Fibonacci tool, the cursor turns into Fibonacci symbol. Now if the preceding wave has a Higher High then insert the Fibo tool at the bottom of previous wave and drag it to the top of the wave. Similarly, if the preceding wave has a Lower High then insert the fibo tool at the top point of the precious wave and drag it to the lowest point as demonstrated in the following video.

    This is how you can draw Fibonacci support and resistance levels on forex charts. Not to mention, the key Fibonacci levels include 0.0%, 32.8%, 50%, 61.8%, 76.4%, 100.00% and 161.8%.

    How to Insert 76.4% Fibonacci Retracement?

    The Fibonacci tool does not have the 76.4% retracement by default. So you need to edit Fibonacci tool in order to include this importance retracement level. The addition of 76.4% into Fibonacci tool may be done by following a simple method as shown in the following video.

    Besides adding 76.4% fib level, the above video clip also highlights addition of numerical value for each Fibonacci level by adding @%$.

    So this is how you can calculate forex support and resistance levels with the help of Fibonacci retracement tool.

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