PREVIOUS PART: PART 12. MORE EXAMPLES OF TRADES

How to install the rainbow template from part 8?

Download files from this address.

Unzip the files. First, copy both files named Kijun-Sen+ to the folder expert / indicators. It is located in your Metatrader installation folder.
Next, copy the rain-template file to the Templates folder located in your Metatrader installation folder.
Now run Metatrader, click the right mouse button and select the rain-template from the templates available.

How to install Pivot points?

First, download the zip file from here.

Now unzip the files and copy them to theexpert /indicatorsfolder. It is located in your Metatrader installation folder. Restart Metatrader.
Go to the upper menu Insert -> Indicators -> Custom and select Pivotpoints-day-week-month. Now you should see this configuration window:

13.1. Configuration window for Pivot points.

13.1. Configuration window for Pivot points.

Go to the second tab. Here you can edit which Pivot points you want to place on your chart. For weekly points, for example, select Weekly: true and Weekly_SR_Levels: true. If you want to place all of them, select true for each option.
I recommend leaving theUse_Sunday_Data set false.



Click OK and you should see the Pivot levels on your chart:

13.2. Pivot levels on chart.

13.2. Pivot levels on chart.

I recommend saving this as a template. Just click the right mouse button on the chart, go to Template and select Save Template.

How to setup the retracement and extension lines together in MetaTrader?

Select the Fibonacci retracement tool from the fast menu:

13.3. Setting up retracement lines – step 1.

13.3. Setting up retracement lines – step 1.

If you can’t find it, go to the upper menu (Insert), click Fibonacci and select Retracement.

Draw the retracement lines on the chart:

13.4. Draw retracement lines anywhere on your chart.

13.4. Draw retracement lines anywhere on your chart.

Select them so that the line going from 0 to 100 is highlighted. Now click the right mouse button and select the first option – Fibo properties.

In a new window, go to the second tab – Fibo levels. This is the place where you can add, remove or edit your Fibonacci levels. To edit value, just double click on it.

13.5. Window where you can edit levels.

13.5. Window where you can edit levels.

The first column in the table (Level) is a place where you define the level. The second column (Description) contains the description visible on the chart.

Now edit values in order to have levels as in the following table (the list is in the Level – Description order):

Level Description
0 0
0.236 23.6
0.382 38.2
0.5 50.0
0.618 61.8
0.78 78
1 100
-0.18 118
-0.27 127
-0.382 138.2
-0.618 161.8
-1 200
-1.618 261.8

As a result, you should have the retracement and extension lines as one tool:

13.6. Final result – extension and retracement lines together.

13.6. Final result – extension and retracement lines together.

In the future, you can edit these levels if you want to, but this set is more than enough for new traders.

How to draw them correctly?

It is simple. In a downtrend, when you look for a short opportunity, you draw the retracement from high (A) to low (B):

13.7. Correct direction of drawing retracement lines in a downtrend.

13.7. Correct direction of drawing retracement lines in a downtrend.

At point A there will be the 100% line and at point B – the 0% line.

In an uptrend, when you look for a long opportunity, you draw your retracement from low (A) to high (B):

13.8. Correct way of drawing retracement lines for an uptrend.

13.8. Correct way of drawing retracement lines for an uptrend.

In such cases at point A there will be the 100% line and at point B – the 0% line.

Almost the end

So, how hard is it to trade with Fibonacci numbers? I hope that after reading this guide your answer will be – hey, it is not so hard. Of course you can build complicated trading system based on Elliot waves and Fibonacci numbers, but it is not our goal. We want to trade with simple system, which is easy to understand and to follow. I did my best to show you how to trade with Fibonacci numbers that way. If something is still confusing for you, simply go back and read that part again or just write to me – I will be more than happy to help you.

When it comes to successful trading, there are some important things you need to cover:

• Good and easy to follow trading system
• Proper money management
• Patience and lots of practice

I have covered first two parts, but the last one is up to you. I hope that you will succeed and be profitable. It is possible to make good money in Forex and stock markets and I truly believe that with Fibonacci numbers you can achieve that!
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PREVIOUS PART: PART 12. MORE EXAMPLES OF TRADES