Fibonacci Circles is another indicator based on the Fibonacci Sequence used in technical analysis. It is created by drawing a trend line between two extreme points. To get the trend line inclined at 45 degrees, and the circles perfectly round, keep the Shift key pressed while drawing.
Circles are drawn at 11 different levels according to the key Fibonacci Ratios of 23.6%, 38.2%, 61.8% and 100%.
It is important to note, that "typical" levels are used by default. The user has the ability to format the tool to show/hide specific levels as well as manually change level values and save those changes as templates.
Some of the circles might not be visible, because of the scale limitations of the chart window.
Fibonacci Circles can indicate support and resistance levels. Usually when the price remains above the higher circle, and if the higher circle is then penetrated, prices generally fall to the lower circle, which in many cases, becomes the support level. If prices break below the higher circle, fall to the lower circle, and then begin to rise, the lower circle becomes the support level. Also this works vice versa for resistance but in the opposite direction.
In Style property dialog it is possible to change the appearance and configuration of Fib Circles and save these custom changes as a template if needed:
The checkbox toggles the visibility of the trend line and swithes besides adjust its thickness and style.
Checkboxes on the left toggle visibility of the circles. With the drop-down beside you can also set the color, opacity and thickness for each circle.
Also, it is possible to enter a custom value for the circle's placement.
Use one color
Use this drop-down to select one color for all the circles and the background between them.
Toggles visibility of the labels with the circles' values.
Coeffs As Percents
This checkbox enables displaying of circle's position percentage value instead of proportional one.
Toggles the visibility and opacity for the background fill between the circles.
In Coordinates properties dialog, you can set precisely the position of the Fib Circles' trend line by setting it's initial points' position on the price scale (by setting the price) and the time scale (by setting the bar number) and save these custom changes as a template if needed:
Allows for the precise placement of the fib circles trend line's first point (Price 1) using a bar number and price.
Allows for the precise placement of the fib circles trend line's second point (Price 2) using a bar number and price.
In visibility properties dialog you can toggle displaying of the Fib Circles 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 and save these custom changes as a template if needed: