How to set up fib levels?

Hi guys,

simple question…how do u set up fib levels? Do you use fib retractment for that? and how do u decide where to drag? thanks

the SCHOOL link on babypips explains how to use fib retracments and projections

The school is a good place to start but if you are still confused then try going to They have videos on the fx as well.

You usually take the nearest low and nearest high and connect 0 to 100%. From there you can identify the important levels. Like so below.

This is very arbitrary in the fact that which timeframe (depending on your trading style), which low or high level to use. This part takes time, practice and trial and error. But the biggest question is when prices do reach that important fib level, how does one determine if it will continue or stop and reverse? Look for the retest of those levels and fail, you may have possibly seen your reverse.

thanks for taking the time…and thanks to everyone else as well

try this fib levels for MetaTrader

number 1 fib levels:89, 144, 233
number 2 fib levels:144, 233, 377
number 3 fib levels:233, 377, 610

Fib (3.71 KB)