Is there fibonacci extension in MetaTrader? I can’t seem to find it… or do i have to get some kind of a custom made indicator?
Fibo is built into Metatrader. Click on Insert, then Fibonacci, then the type you want (Retracements, arcs, fan, etc…). You can then click on your swing high or low, then hold in the mouse button and click on the other swing high or low and they will appear. I like Metatrader Fibo lines so much better than my broker Oanda
I’m looking for Fibonacci Extension mentioned here:
http://www.babypips.com/school/fibonacci_extension.html
is this the same as Fibonacci Expansion in MetaTrader? 
I believe they are the same. When you plot it you will see the fibo retracements listed in the paranthesis. 1.2597 (0.382), 1.2631 (0.618),1.2687 (1.000), 1.2743 (1.382), 1.2760 (1.500), and 1.2777 (1.618). These are the only ones I use so does anyone else know if you can plot the Extension levels as opposed to the retracements?
A Fibonacci Expansion is not the same as an Extension. To add an Extension, clilck on Fibonacci Retracement and just add whatever extensions you would like to the Fibonacci Retracement, e.g., you may feel that in the past Price has run to the 1.618 level, or the 2.0, etc. before reversing. A Fibonacci Expansion, on the other hand, is used to measure the frist part of an A-B-C wave pattern and predict where Wave 3 will end. In MetaTrader an Expansion is called up separately; you will see Retracement and also Expansion. Click Expansion. You run a trend line from the bottom of Wave A to the top. A second trend line will appear and will run off into space at an arbitrary angle. Double-click the Wave A trend line so you can manipulate the tool. Then pull the end of the stray trend line to the end of Wave B. The Expansion will appear and will show where Wave C will likely end. If you see an ABC pattern developing, it is a good idea to set a Take Profit at the top of the Expansion, as Price will often peak there and fall back.
Bob
Hi Bob,I Have read this your post about Fibonacci Expansion in mt-4.It is very useful.But I want to know one thing that “pull the end of the stray trend line to the end of Wave B”—what is the proper meaning of this line.Ypu know I misunderstood about to which end of trendline A to be pulled to the end of trendline B.I mean first trendline A from swing low to swing high has two ends like lower one and the other one at higher top…so I want to knwo should i pull the lower swing low end or top swing high end to the end of wave B.Plz answer my this query…Otherwise your post is so helpful.
From,
AD.
Here is a more complete explanation of the mechanics of a Fibonacci Expansion on MT4.
Click the Insert menu, highlight Fibonacci and click Expansion. The tool appears. You want to see where wave C of an A-B-C uptrend is liable to top out. Use the tool to draw a trend line from the bottom of Wave A to the top. Horizontal lines appear overhead, labeled FE61.8, 100, 161.8, etc., and a separate trend line appears, running from the top of Wave A off at arbitrary angle. In order to activate the tool, doubleclick the first trend line; little squares appear at the end and the middle. Now drag the loose end of the stray trend line to the bottom of Wave B,that is, don’t think about “top end” and “bottom end;” just drag the loose end that’s not connected to anything. The horizontal line labeled FE100 will be pulled to the level at which Wave C is predicted to top out. You will be surprised how often this works. It’s kind of like your own personal magic.
Incidentally, if you use the tool to back-test a trading method, you may find that the horizontal lines run too far to the right, cluttering the future portion of the chart. Just drag top of the first trend line to the left, and the horizontal lines will shorten.
If the tool confused you, here is a simpler way to do the same trick. The Fibonacci Expansion’s 100 level is merely the technique known as a “measured move.” A measured move takes advantage of the fact that Wave C will often move the same amount that Wave A did, though perhaps at a different angle. To implement this technique on a platform that does not provide a Fibonacci Expansion tool, such Oanda’s fxTrade, merely draw a trend line from the bottom of Wave A to the top. Then create a clone of that line and drag it so the bottom starts at the bottom of Wave B. The top will measure where Wave C is likely to to out. You can, of course, so this on MT4 also if you don’t want to bother with the Expansion tool. Just reverse the directions, of course, to “measure” a bearish A-B-C wave.
Here is some related stuff: I trade bounces of EMA 20. I use an overlay of Ichimoku–just the cloud, not the other lines–to show areas of broad support and resistance, plus ADX/DMI in a separate panel to show divergences. I use hidden divergence to encourage an entry where the trend is likely to resume, and regular divergence to show me when a trend leg is likely to end, so I can be alert for a place to exit. If you see a regular divergence between price and the positive DMI line, and price is also at the FE 100 level, that is usually a good place to exit.
See the tutorial on divergence in the Baby Pips school to see how to take a hidden divergence. Be careful, though, about using negative DMI (usually positive line is green, and negative line is red) or negative ADX (ADX when the negative DMI is above the positive), because, due to the fact that negative DMI rises when price falls, hidden divergence works “upside down.” In other words, if you draw a rising trend line across two valleys of price and then look for a hidden divergence on the negative DMI, you have hidden divergence when a trend line across the peaks (not valleys) of -DMI rises, that is, runs in the same direction, as the trend across the valleys of price. I’m sorry if this sound confusing;there is no way to make it clearer. Just experiment with it. I like ADX/DMI because it measures the strength of the trend and gives you other information if you’re used to, but if you simply can’t get the hang of ADX, you may instead want to use MACD, which always works in the conventional way, to take divergences. Be careful of using the histogram, though; being the derivative of a derivative, the histogram only accurate for divergences in a very short-term way and even then may give you a bum steer. In this respect, be advised that the histogram that comes with MT4’s standard MACD is unusual in that it shows the MACD itself, and not its derivative. For a “correct” MACD, go to the MQL4 community and search for an indicator called “newMACD.”
HI Dear,Nice post about explaination,you have cleared my small doubt, but already I tried dat option of FE yesterday .Thanks for post…