Fibonacci Retracements
Overview
Fibonacci Retracements are used to specify horizontal lines at price levels, which can be used to determine probable values of support, resistance and potential price targets based on a market’s previous range. Common values are the Fibonacci sequence 38.2% and 61.8%, although other levels can be added, such as 50%, or 138.2%.
To apply the tool to your chart, select the tool from the Fibonacci tool menu. With the tool selected, left-click once on the chart to choose a starting point. Left-click on the chart again to select the end point. With the start and end points selected, move your mouse cursor to the left or right to extend the level lines, then left-click to anchor them to the chart.
Actions & Properties
Actions
Add Price Alert: Selecting this action will set a Price Alert at the value the Horizontal Line is positioned.
Add to Toolbar: Adds the selected tool to your custom toolbar.
Apply Settings to All: When multiple Fibonacci Retracements tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Fibonacci Retracements tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.
Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.
Price Flip: Allows you to create a duplicate of the tool along the price axis.
Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Fibonacci Retracements to a chart, the tool will display using the new settings.
Delete: Deletes the tool from the chart.
Properties
Tool Name: Allows you to adjust the name of the tool, as it’s displayed in the Structure Panel.
Levels: Click on this option to display the different Fibonacci Retracement levels.
Extend Left: Check this box to extend the Retracement lines to the left.
Extend Right: Check this box to extend the Retracement lines to the right.
Show Prices: This provides an option to show or hide the price value for each Retracement line.
Show %: This provides an option to show or hide the percentage value for each Retracement line.
Label Alignment: Can elect to display the price label in different positions in relation to the Retracement lines, there are 8 options available: Top Left, Top Right, Centre Top, Bottom Left, Bottom Right, Centre Bottom, Centre Left and Centre Right.
Font Size: Allows you to adjust the size of the text displayed for each label used in the Fibonacci Retracements. Moving the slider bar to the right increases the font size.
Mirror: Selecting this check box will display a mirror image of the tool either above or below the drawn Fibonacci Retracement.
Lock Log: When ticked, gives you the ability to maintain the line spacings of the Fibonacci Retracement lines, when moved from its original location on a Logarithmic chart.
Scale Mode: Can be set to either Price or Percent. The Percent mode calculates percentage retracements based on the Logarithmic Scale, not the linear scale. For example, a 50% retracement of a move from 300 to 500 using a linear scale (Price Mode) is 400. The new scale mode allows for a logarithmic calculation to be used. Using the log scale the 50% retracement of a move from 300 to 500 is 387.30. The 50% level, when using the new scale method could also be referred to as the Geometric Mean between the two selected price levels. For the Percent mode to function, the chart must be set to Logarithmic Scale.
Line Style: The Line Style property allows you to adjust the type of the Retracement lines displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot and Stippled.
Line Width: Allows you to adjust the width of the Retracement lines. Moving the slider bar to the right increases the thickness of the line.
Line Colour: Allows you to select the colour of the Retracement lines. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.
Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.