In my previous thread I just asked about the fibonacci extension. But as I couldn’t find the tool in my mt4 software. I want to ask about what to do so that I can draw extension just like shown here: http://www.babypips.com/school/images/grade3/fibonacci-extension-uptrend-end2.png
I have attached the screenshot of my mt4 software. Its of instaforex company. So those who works under instaforex, please help me in this cause I am feeling so frustrated.
I read the article again and learned how to make fib extension. But didn’t understand some parts of it. In the figure no. 1 of fib extension http://www.babypips.com/school/images/grade3/fibonacci-extension-uptrend-end2.png here it is said that 61.8%, 100% and 161.8% levels are good for taking profits but I didn’t understand whether it meant going long or short at those level cause they are both resistance and support level.
and in http://www.babypips.com/school/images/grade3/fibonacci-extension-downtrend-end2.png here they provide support and the article says we could have taken some profit here too, what does that mean? cause the levels provide support and their aren’t much buy order, how could we take the profit at those levels?
Before you worry about where to take profit, first you have to first figure out if you should place a buy (long) order, or a sell (short) order.
Once you do that, then you draw the fibs in that direction.
If you are going long you draw from a low “up” to a high and the extensions are only considered resistance.
If you are going short, you draw from a high “down” to a low and they are only support.
[B]Any lines (fibs, pivots, trend, moving averages, etc) above price are resistance…any lines below price are support.[/B]
Ok. But if it is not annoying, can you tell me what the article in babypips meant to say where it said that those levels could be used for some profits cause I somehow don’t think that the words and the figures didn’t match(only a newbie thought 
).
I don’t find it annoying at all. Maybe your confusion is because they are describing what happened “after” the fibs were drawn. Price stopped retracing down to the 50% level because a lot of buyers came in and price starts going back up. At this point the rest of the chart is still blank and if you were one of those buyers, you’d have to decide which of the fib resistance levels (extensions) you would close out your order at. Babypips example went on and gave a play by play for you to follow along showing how price moved up and down as it zigzags along it’s way. One minute a line can be resistance, then the next the same line can be support…it depends on whether price is above it or below it. But when you first drew them they were either all support or all resistance. As price moves up or down thru them, they change.
Have you read the chapter on support & resistance yet? Support and Resistance | Support and Resistance Levels | Learn Forex Trading
Ok I again read the fib extensions and understood it now :). It was just a bit of confusion there
Thanks for you always fast answer. Anyhow I wasn’t confused at the 50% level, it was a bit another topic after I thought about it again.
yeah other question:
In head and shoulder formation, Should the lows of head touch the neckline too? I mean is it compulsory?
and what time frame would be a very good choice for the chart patterns given in grade 7 of school of pipsology? I mean in which time frame there is more chance of those patterns appearing along with good profit.
I think the lows of the head form the neckline…so yes!
Here’s another example Head and Shoulders: The Free Forex Encyclopedia
If you looked at a 5min chart and a daily chart, without any reference to what timeframe they are, you can’t tell them apart…that’s apparently what is meant by being “fractal”. They appear on all timeframes however, the range of the pattern is relative to it. Meaning, if you find it on five-minute chart, then you can expect less pip movement to complete the pattern in a shorter time (hours), whereas on a daily you can expect greater pip movement over a longer period of time (weeks). Which one you see it on then determines how you calculate the position size by the size of the risk. You can make the same profit (or loss) on either timeframe by adjusting the size of your position to accomodate it.
Of course that is just one school of thought 
Thanks. and in MACD there is only the difference of 12 and 26 period moving average shown in the indicator and the histogram. I am not able to put 9 period moving average in the indicator. Can you please give some advice?
Do you mean the macd that comes with MT4? And when you say you are not able to put the 9 period ma, does that mean there is no input box for it, or do you mean it doesn’t seem to display it when you attach it to a chart?
Yes I mean the MACD that comes with MT4. I can only see one moving average and histogram there.
ok good, so you can enter the 9 period but it just doesn’t show. An oversight by MT4 in my opinion…same oversight that didn’t include a pivot indicator too.
You can either search the internet for a better macd indicator and download it to your charts, or, you can drag n drop the Moving Average indicator onto the macd window and in the “Parameters” tab change the “Apply To” to “Previous Indicator’s Data”. Then make sure the period is 9, and also change the color to be different than the other MA.
Yeah I tried both the option. Didn’t get a good indicator (got 2-3 but they were all messy). And I tried to add the MA by changing its parameters but neither did it go to the indicator data nor did it disappear from the main chart .
If I use 9 in the 2nd ma indicator, I still only get one ma shown on the histogram…if I use 12, then it shows the 2 of them.
Can you recommend a good MACD indicator. Cause I did what you said but it still showed only 1 moving averages in the MACD indicator.
So to confirm, your macd settings are
Fast EMA = 12
Slow EMA = 26
MACD SMA =9
Apply to = Close
?
And your MA overlayed on the macd is 12 EMA applied to previous indicator data
?
Nope, if that doesn’t work for you, I don’t use macd so I can’t really recommend any other…sorry.
yeah the settings are that. But the MA in my MACD indicator is still only one ma ( difference of 12 and 26 ema).
I see you don’t use MACD. well I also don’t use it but I am currently going through the babypips school so I am trying to gain basic idea of everything so that I can gain one or maybe more strategy to use.
Hi,
this is my recent read in babypips edu,Yes even i got confusing about the ‘extension tool’ in mt4,I only have expansion.Is that the same tool?Furthermore if i wanted to place my fibo retrace in the uptrend market,On which side i should point it first?From down to up?
And about placing the fibo retrace,On which swing highs or lows do i point?is it on the highest/lowest one?or by time/date?
Sorry,My english is bad.
Thank you.
please i also cant seem to find the tool for drawing fib extentions…please help
