Top › Technical indicators › Fibonacci Retracement

Technical indicator #9

Fibonacci Retracement

A tool that draws guides for how far price may pull back from a rise (or fall). It helps you spot pullbacks and bounces.

Importance★★★

TypeLines

Common settings38.2%, 50% and 61.8% are common

MT5（FUNDED7）Built in (drawing tool)

1A 30-second chat

JUDITHWhy such odd numbers like 38.2%?

JADEThese numbers come from the "golden ratio," which shows up often in nature. The basis is weak, but a big reason they matter is that everyone is watching them.

JUDITHWhere do I draw it from and to?

JADEJust draw it from a clear low to a clear high. Since everyone draws it in slightly different places, using only the levels that line up with horizontal lines makes it more reliable.

2Here's how it looks

Around 38.2%, 50% and 61.8% of the rise are seen as likely pullback zones

3Just check this

38.2%

A shallow pullback. In strong trends, price often stops here.

50%

The halfway retracement. A level watched for a long time

61.8%

A deep pullback. If price breaks below here, the trend is often seen as broken.

4Reading basics

▲ Sign it may riseIn an uptrend, price drops to 38.2–61.8% and stops → as a pullback, it tends to rise again

▼ Sign it may fallFalling well below 61.8% → the uptrend may have broken down

Technical indicators are calculated from past price moves, so they react a little late and can be wrong (false signals). The basic rule is not to decide from just one.

5Prop firm watch-outs

Fibonacci lines are drawn differently by different people, and they are not lines where price "always stops." If you buy a pullback, place your stop loss first at a spot like a little below 61.8%, where "if it breaks here, I was wrong." That way you know your loss in advance.

Daily loss line:5% of the previous day's closing balance. Unrealized losses count too (Official FAQ）

6How to show it in MT5

These are real screens from the Android MT5 app.Swipe sideways, or use the button below to go next

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📱 Smartphone (iPhone & Android)

Tap the chart once to open the round menu, then Objects (オブジェクト) → "+" at the top (Add object / オブジェクトを追加) → Fibonacci Retracement

Tap where you want it on the chart (for Fibonacci, swipe from the low to the high)

Tap a line to select it and move it. Long-press → Edit object (オブジェクト編集) to change the color and more

To delete, use "Uninstall (アンインストール)" at the top of the Objects (オブジェクト) screen

💻 Computer

In the top menu, click Insert (挿入) → Objects (オブジェクト) → Fibonacci → Fibonacci Retracement

Click (or drag) on the chart to draw it

Double-click a line to select it, then right-click → Properties (プロパティ) to change the color and more

🔧 Numbers to enter (common settings)

✓

How to draw

Trace from a clear low to a high

✓

Levels to watch

38.2%, 50%, 61.8%

✓

Change levels

"Fibonacci" in Properties

To redraw it, select the line and move its end points. For the steps, see the official help from MT5's developer (iPhone · Android · PC). Menu names may appear in English depending on your language settings.

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Common settings are general guides. How to show them depends on the chart software.