Fibonacci Retracements are used to estimate likely reversal points during an up- or down-trend. Percentage retracement levels, based on significant Fibonacci numbers, are plotted as horizontal lines against the latest trend move.
- Select Fibonacci Retracements from the Draw menu or toolbar
- Drag your mouse over the selected range (of the rally or decline)
- Select Highs and Lows for short-term charts or Closing Price for long-term
- Click the select button to complete the drawing.
Note how the retracement found support at the 38.2% and 61.8% levels.
Add or delete Fibonacci levels by right-clicking on any Fibonacci Line and selecting Fibonacci Drawing Options (or select Draw >> Draw Options >> Fibonacci from the chart menu).
You can add further levels, remove existing levels or reset the default fibonacci levels.
Amend Fibonacci colors by right-clicking on any Fibonacci Line and selecting
Adjust Line Color.
To change the default color for all Fibonacci lines, select Format Charts >> Colors >> Fibonacci Retracements (or Extensions) from the chart menu.
To delete Fibonacci Lines, right-click on one of the lines and select Delete from the menu.