Fibonacci Retracement

Fibonacci Retracements are displayed by drawing a trendline between two reference or extreme points on the chart (usually a trough and opposing peak). Next, a series of nine horizontal lines are drawn. The lines intersect the trendline between the two reference points at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50.0%, 61.8%, 100.0%, 161.8%, 261.8%, and 4236%. Some of the lines might not be visible, because of the scale limitations in the chart window.

 

When a price increases or decreases significantly, it will often retrace a significant portion. During retracements, support and resistance levels can be defined at or near the Fibonacci Retracement levels.

 

After a significant price move (either up or down), prices will often retrace a significant portion - if not all - of the original move. As prices retrace, support and resistance levels often occur at or near the Fibonacci Retracement levels.

 

Properties: Double-click on the tool to display its properties.

 

 

Add Fibonacci Retracements to a chart

 

  1. From the Chart Tools toolbar, click on the Fibonacci Retracements tool.
     

  2. Holding the left-mouse button, click on the chart where you want to start the control line, then drag the mouse to where you want to end the control line and release the mouse button.
    Result    : The tool is drawn.
     

  3. You may continue to add this tool to the chart by repeating Steps 1-2. To de-select the tool, click on the Selection arrow from the Chart Tools toolbar , or hit the ESC key.

 

Change the position of the control line

 

  1. When the tool is drawn, a "grab bar" is placed where the control line starts and ends. To change the position of the control line, click on the object to select it.
     

  2. Position the cursor on the grab bar, and drag it to the desired location by holding down your left-mouse button.
     

  3. Once done, de-select the tool by clicking anywhere on the chart.