How to Draw Fibonacci Expansion Tool in Metatrader 5

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Contents

• 1 What is Fibonacci Expansion?
• 2 Drawing Fibonacci Enlargement
• 3 Trading with Fibonacci Expansion
• 4 Using with Marketscope
• 5 See Also
  • 5.1 Fibonacci tools
• 6 This Article in Former Languages

What is Fibonacci Expansion?

Fibonacci expansion is a puppet of technical analysis wont to determine support and resistance levels founded along the Fibonacci numbers.

Drawing Fibonacci Expanding upon

To draw a Fibonacci expanding upon, you should identify three points connected the chart which circumscribe two waves:

On uptrend:

• Last low;
• Highest high schoo;
• High low.

Happening downtrend:

• Highest high;
• Lowest low;
• Lower high.

Just now draw a line through these points and your charting application will automatically draw levels of the Fibonacci expansion.

The base levels of Fibonacci expansion go through Fibonacci ratios 61.8%, 100% and 161.8% as displayed on the picture below:

The height of the first line is affected every bit a social unit musical interval. The third show serves as a reference point for building an ultraviolet hierarchic line. The Fibonacci expansion levels are careworn from the reference point connected the interval capable 61.8, 100%, and 161.8 per cent of the unit interval.

Trading with Fibonacci Enlargement

IT is considered that evidential price changes should cost expected near the Fibonacci expansion levels.

Similarly to Fibonacci Retracement, Fibonacci enlargement levels act arsenic support/resistance levels.

The support and resistance levels can live secondhand for determining bribe and sell points. The theme is to enter the market good after a tieback off the retracement, with a limit set at one of the expansion levels and a stop flop under the last inflection distributor point.

Using with Marketscope

You can draw a Fibonacci expansion in Marketscope.

To draw a Fibonacci expansion:

1. Select the Fibonacci Expansion tool. For this, on the toolbar, chatter the Add Fibonacci arrow, and then click Add Fibonacci Enlargement:

   

   Then in the appeared menu choose the appropriate manner in which the tool should be worn:

   • Snap to Nearest - in this modal value the points of tools are automatically snapped to the nearest of the prices: High, Low OR Close.
   • Freehand - therein mode you can draw the tool anywhere in the chart regardless of the graph prices.
   • High/Downhearted - in this mode the points of tools are automatically snapped to High or Low prices.
   • Close - in this mode the points of tools are automatically snapped to Close prices.

2. Click the degree from which the outset line will start.
3. Click the point at which the prototypal line leave end. This line testament be taken as a unit interval for building Fibonacci expansion levels.
4. Click the point at which the second line will end. The points will be automatically adjusted accordant to the selected drawing mode if necessary.
   The Add Fibonacci Enlargement panel will appear.

   

5. Connected the Levels tabloid, you can choose which Fibonacci expansion levels will be drawn. By default, Marketscope draws levels 0.618, 1.000 and 1.618. You can select additional levels from the available set operating theater add a new level away clicking the Add clitoris. On this tab, you can also set back the levels color and style and pick out drawing the levels in the background under the prices.
6. On the Parameters tab, you crapper choose whether the levels start and end should exist long. You can also set the name for the Fibonacci expanding upon and the parameters incidental to to the Fibonacci expansion mark down and legend.

   

7. On the Wave Lines tab, you can set price levels and date/metre for the wave lines, select showing the wave lines and set color, vogue and width for the lines.

   

8. After configuring all parameters, click OK. The Fibonacci expansion will constitute careworn on your graph.

To change the properties of a Fibonacci expansion, do one of the following:

• Double-click any line of the Fibonacci expansion.
• Right-click any line of the Fibonacci expansion, and then click Change 'Fibonacci Expansion List', where Fibonacci Expansion Name is the name of the Fibonacci expansion.

You will see the Fibonacci Expansion Properties. Make the necessary changes, and then click OK.

Note that you rear end apply the changed properties (omit the name) to all further Fibonacci expansions away default by clicking Set as Default in the dialog box.

To resize a Fibonacci expansion:

1. Click the Fibonacci expansion. The wave lines volition become thicker and three markers will appear connected them.
2. Drag the markers to the necessary places connected the chart.

To move a Fibonacci expansion:

• Retarding force the Fibonacci elaboration lines to the obligatory position on the graph.

To remove a Fibonacci expansion, coiffe one of the following:

• Right-chatter any line of the Fibonacci expansion, and so click Remove 'Fibonacci Expansion Name', where Fibonacci Enlargement Name is the name of the Fibonacci expansion.
• Sink in any line of the Fibonacci expansion, and and so military press DELETE.

See Also

Fibonacci tools

• Fibonacci Retracement
• Fibonacci Devotee

This Article in Other Languages

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How to Draw Fibonacci Expansion Tool in Metatrader 5

Source: https://fxcodebase.com/wiki/index.php/Fibonacci_Expansion