The Fib Retracement tool is not included in your favorites by default, so you can add it by selecting the hollow star next to the tool icon and name. A favorites toolbar will then appear.
Fibonacci Retracements are an extremely popular tool in technical analysis. They are created by first drawing a trend line between two extreme points. The vertical distance between those two points is then divided up vertically with horizontal lines placed at key levels at the key Fibonacci Ratios of 23.6%, 38.2%, 61.8% and 100%.
The Fib Retracement tool includes the ability to set 24 different Fibonacci levels (including the 0% and the 100% levels that are defined by the two extremes of the trend line that is originally drawn). Values between 0 and 1 are internal retracement levels. Values greater than 1 are external retracement levels while values less than 0 are extensions. A checkbox is available for each defined level which allows that level to be turned on or off for display purposes.
The main use of these levels is that they act as levels of support and/or resistance when price is retracing back from an original advance or decline. These are key levels to take note of when price is correcting or experiencing a counter-trend bounce. The idea is that after an initial move (either a decline or an advance), price will often retrace back towards the direction it came from. The areas or levels defined by the retracement values can give the analyst a better idea about future price movements. Remember that as price moves, levels that were once considered to be resistance can switch to being support levels. The opposite is also true.
Gocharting automatically takes care Fibonacci Retracement on Log Scale
In Appearance property dialog it is possible to change the appearance and configuration of a Fib Retracement:
The checkbox toggles the visibility of the trend line and switches beside set it’s color, opacity, thickness and style.
Sets thickness and style of the levels’ lines.
Checkboxes on the left toggle the visibility of additional levels. Also, it is possible to enter a custom ratio for the level’s placement and set the color and opacity for each level.
Use this drop-down to select one color for all the lines and the background of the Fib Retracement.
Extends levels’ lines indefinitely to the right.
Sets the level value text position along the level.
Toggles the level’s price absolute or percent value visibility beside the level.
Toggles the visibility and opacity for the background fill between the retracement’s levels.
In Shape properties dialog, you can set precisely the position of the Fib Retracement by setting it’s trend line’s position on the price scale (by setting the price) and the time scale (by setting the bar number):
Allows for the precise placement of the fib retracement’s first point (Price 1) using a bar number and price.
Allows for the precise placement of the fib retracement’s second point (Price 2) using a bar number and price.
In View properties dialog you can toggle displaying of the Fib Retracement on charts of different timeframes.Allows to configure a drawing to be displayed on particular intraday and daily timeframes on chart. For any timeframe you can select either to show it, or to hide.