MT4 Fibonacci Retracement Auxiliary Indicator Download - Free - [TFlab] | Forex Indicator Download - MetaTrader 4 Resources

The Fibonacci Retracement auxiliary indicator is one of the MetaTrader 4 indicators. Fibonacci is one of the most widely used tools in technical analysis and helps traders identify key price reversal points.

To use this indicator, you must first use the Fibonacci tool to select two points on a MetaTrader price chart: a High and a Low. The indicator then draws a line between these two points in Fibonacci ratios. These lines act as support and resistance levels where price may pull back.

Indicator Table

The image below shows a chart of the EUR/USD currency pair on a 5-minute time frame. On the left side of the image, there is an upward move (AB) whose retracement (BC) reaches the 61.8% Fibonacci level and shows a bullish reaction.

Therefore, the Fibonacci retracement levels actually act as support. Furthermore, on the right side of the image, there is a downward move (AB) whose retracement (BC) reached the 78.6% level and shows a bearish reaction. Therefore, Fibonacci levels act as resistance levels in this case.

Overview

The Fibonacci retracement auxiliary indicator is a powerful tool in technical analysis and can help traders identify reversal points as well as key support and resistance levels.

However, it can be used in conjunction with other technical analysis tools, such as trend lines, to optimize its use.

Bullish Fibonacci Conditions (Buy Position)

The image below shows the gold (XAUUSD) price chart on the one-hour time frame. The retracement (BC) has reached the 61.8% Fibonacci level and coincides with the uptrend line (bullish trendline).

In this case, the 61.8% Fibonacci level acts as support, creating a favorable opportunity to enter a buy trade. table top table bottom

Bearish Fibonacci Conditions (Sell Position)

The price chart of the USD/CHF currency pair on the 5-minute time frame is shown below. The retracement (BC) has reached the 78.6% Fibonacci level, coinciding with the downtrend line.

In this case, the 78.6% Fibonacci level acts as resistance, creating a favorable opportunity to enter a sell trade.

Fibonacci Retracement Indicator Settings

• FiboColor : Choose the color you want based on the chart background color.

Note : The main level settings of the Fibonacci secondary indicator are preset and do not need to be changed.

Conclusion

Support and resistance levels are the most critical and influential levels in market movements and trends. Fibonacci retracements are a tool whose levels act as support and resistance for price.

By using Fibonacci ratios in a trading strategy, traders can identify potential MT4 support and resistance levels based on previous price movements.