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Fibonacci Tools
Fibonacci tools are used to draw support and resistance lines using the historical Fibonacci magic numbers. The Fibonacci Numbers 0.382, 0.500, 0.618, 1.00, 1.618, etc. are widely used in the market to identify support and resistance levels. FOREXTrader Charts currently provides two functions to utilize these numbers:
Fibonacci Retracement
The Fibonacci Retracement function takes two input points to draw the potential support/resistance levels. First, click on a high point or low point on the chart to set the first point of the Fibonacci Retracement function. Then find the second point and click on the chart once more to finalize the coordinates of the two points. This will be the distance used for calculating the retracement. Green horizontal lines, signalling key Fibonacci Retracement levels (i.e. 0.00, 0.382, 0.500, 0.618, 1.00, and 1.618) will then appear. The support and resistance lines will then preserve their positions and one can then continue on with the analysis.
Fibonacci Projection
The Fibonacci Projection function projects the Fibonacci Retracement levels of one retracement onto another point in time. The function takes three input points to draw the projected rise or fall of the price. First, click on a high (low) point on the chart to set the first point of the Fibonacci Projection function. Next, find a second point, this time a low (high) and click on the chart again. This will be the distance used for calculating the retracement. The third point will be used for the projection. Once identified, click on the chart once more and purple horizontal lines will appear, signaling key Fibonacci Retracement levels (i.e. 0.618, 1.0, and 1.618). One can then continue on with the analysis.
To clear the analysis, simply click on 'Fibonacci' > 'Clear Last' from the toolbar to clear the last study drawn. To clear all studies from the chart, click on the 'Clear All' selection.
For reference, the Fibonacci support and resistance price levels are displayed on the green horizontal lines or purple horizontal lines as well as on the upper-left corner of the chart.
Gann Lines
The Gann Lines function takes two input points to draw the potential support/resistance levels. First, click on a high point or low point on the chart to set the first point of the Gann Lines function. Then find the second point and click on the chart once more to finalize the coordinates of the two points. Afterwards, the Gann angles will be drawn on the chart.
To clear the analysis, simply click on 'Fibonacci' > 'Clear Last' from the toolbar to clear the last study drawn. To clear all studies from the chart, click on the 'Clear All' selection.
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