Fibonacci Tools
Fibonacci Retracement (Alt + F)
Fibonacci Retracement is a powerful technical analysis tool that helps identify potential support and resistance levels during price corrections. These levels are based on key ratios derived from the Fibonacci sequence.
How to Use
- Select the Fibonacci Retracement tool (Alt + F)
- Click at the starting point of the trend (first extreme point)
- Drag to the second extreme point and click to complete
- For uptrends: Start at low, drag to high
- For downtrends: Start at high, drag to low
Key Fibonacci Levels
The tool automatically creates horizontal lines at key percentage levels:
- 0% (start of the measured move)
- 23.6%
- 38.2%
- 50% (not actually a Fibonacci ratio but widely used)
- 61.8%
- 78.6%
- 100% (end of the measured move)
Practical Applications
- Identify potential reversal zones during retracements
- Set strategic entry points after pullbacks
- Place stop-loss orders below/above key levels
- Determine price targets for trades
- Confirm support/resistance with other indicators
Customization Options
Trend Line Settings
- Toggle trend line visibility
- Change line color and opacity
- Adjust line thickness
Level Line Settings
- Modify line thickness and style
- Add custom levels (click “Add level” at bottom of level list)
- Remove unwanted levels
Background Options
- Enable/disable background fill between levels
- Adjust background opacity
Display Options
- Reverse: Flip the retracement vertically
- Prices: Show price values next to each level
- Levels: Toggle visibility of level percentages
- Labels: Position level values along the line
- Font size: Adjust text size
Precise Positioning
Fine-tune placement using the Coordinates properties:
- Price 1: Set exact position of first point (bar number and price)
- Price 2: Set exact position of second point (bar number and price)
Pro Tip: Former resistance levels often become support levels after breakouts. Pay special attention to how price reacts at the 38.2% and 61.8% retracement levels, as these often provide strong support/resistance.
Fibonacci Extension (Alt + Shift + F)
Fibonacci Extension helps identify potential price targets beyond the original trend. It’s particularly useful for setting profit targets and identifying possible reversal zones after a retracement has completed.
How to Use
- Select the Fibonacci Extension tool (Alt + Shift + F)
- Click to place the first point at the beginning of the move
- Click to place the second point at the end of the initial move
- Click to place the third point at the end of the retracement
- The extensions will project beyond the second point
Key Extension Levels
Common extension levels include:
- 100% (the length of the original move)
- 127.2%
- 138.2%
- 161.8%
- 200%
- 261.8%
Practical Applications
- Project potential price targets beyond previous highs/lows
- Identify possible reversal points after strong trends
- Set profit-taking levels for trend-following trades
- Plan position sizing based on risk/reward at extension levels
- Confirm price objectives from other technical methods
Customization Options
The Fibonacci Extension tool offers the same customization options as the Retracement tool:
- Line appearance settings
- Level configuration
- Background options
- Text display preferences
Precise Positioning
The Coordinates properties allow exact placement of all three points:
- Price 1: First point of the move (starting point)
- Price 2: Second point of the move (end of initial move)
- Price 3: Third point (end of retracement)