There are many trading varieties in the foreign exchange market, currencies of various countries, crude oil, gold, etc. Today we will talk about how to use the golden ratio indicator.
Step 1: Find the golden ratio indicator or Fibonacci retracement line in the line drawing toolbar. If there is none in the toolbar, you can follow
How to add or delete line drawing tools on MT4?
How to draw the golden section technical line (Fibonacci retracement line) on foreign exchange MT4?
Step 2: Right-click the golden ratio indicator, find the band you want to analyze, and draw a line from bottom to top (upward) or from top to bottom (downward)
When we go from bottom to top (upward), the 100 of the golden section line is below and 0 is above; when we go from top to bottom (downward), 100 is above and 0 is below
Step 3: Place the mouse on the highest point of the candlestick, you can see H:209.42 at the bottom of MT4
Step 4: Find the red line, right-click with the mouse, and select “Fibo Properties”
Step 5: Find the parameter and set the highest value to 209.42
Step 6: Find the lowest value of the area you want to test according to the above method, and then set it to the lowest value of the parameter
Step 7: After setting the highest and lowest values, click OK to determine the position of the golden section line
Everyone needs to pay attention to the fact that exchange rate changes are affected by many factors. You can use the golden section line for volatility analysis, but you should also refer to other data.