What is Fibonacci retracement tool?

The Fibonacci Retracement Tool Fibonacci retracement is the most widely used technical analysis tool based on Fibonacci ratios. The Fibonacci retracement can be used when trading any financial market (Forex, Equities, Bonds or Commodities) in any timeframe.

Which retracement is based on a Fibonacci number?

The Fibonacci Retracements Tool at StockCharts shows four common retracements: 23.6%, 38.2%, 50%, and 61.8%. From the Fibonacci section above, it is clear that 23.6%, 38.2%, and 61.8% stem from ratios found within the Fibonacci sequence. The 50% retracement is not based on a Fibonacci number.

How do I use the Fibonacci retracement tool in MetaTrader?

To apply the Fibonacci Retracement tool in MetaTrader: Go to Menu >Insert >Fibonacci>Retracement Basic Tips when Using The Fibonacci Retracement Tool (1) Ignore the Fibonacci retracement during important news releases or after key fundamental changes.