In our trading we primarily use TradingView for our analysis due to it’s flexibility and the ability to display multiple timeframes all in one window. There are also many other features that make analysis easy with TradingView and one of these is the built in Risk:Reward tool.
Unfortunately Metatrader does not have this feature but we will walk through how to modify an existing indicator to show these levels, this is a useful exercise as it will show you visually what you are risking, where the stop is being place and also where your target is.
The Indicator that we will be modifying in Metatrader is the Fibonacci tool, please note that if you modify the parameters below you will only be able to use it as a Risk:Reward tool, if you decide that you want to use the Fibonacci tool in it’s standard format you will need to replace the parameters that you will be modifying with those of the original indicator all of which we will explain in detail for you.
Identify the Fibonacci Tool.
When you open Metatrader you may have some of the Toolbars showing by default and here you will find the Fibonacci Tool indicator (Outlined below).
You can also select it from the Menu options ‘Insert > Fibonacci > Retracement‘.
Modify the Fibonacci Tools Settings
Once you have added the Fibonacci Indicator to your chart you will then want to adjust the parameters, to do this you will need to Right Click on the selected Fibonacci Indicator on your chart and then select ‘Fibo Properties’.
This will bring up the Properties dialogue box which contains all of the parameters (Fibo Levels) that you will need to adjust.
Once you have this visible you will want to Delete all of the Levels and Descriptions that are there with the standard settings.
Adding the Risk:Reward Parameters
The values in the table above are those for which you need to Add to the Fibo Levels section, as yours will be blank just click on the Add button to add the first Level and continue to add them all the way up to 5 R or more if you feel like it!
Another useful addition to the Description is adding – %$ after the text as this will also display the Price at which the lines are marked out on the chart.
For example “Stop Loss – %$” this would show the text Stop Loss and then a dash and the price at which the Stop Loss was marked out on the chart as below.
Now once you have added the newly modified Fibonacci Tool to your chart you can clearly see the Stop Loss, Entry Price and all of the Risk:Reward levels and the associated Prices. You may need to adjust the Fibonacci Tool a little at first to get used to how the scale works but once you have the hang of it, it’s quite a handy tool for using to show where you plan to take profit and also for using to annotate your charts for your journal.
Resetting the Fibonacci Tool Parameters
If for some reason that you wish to reset the Fibonacci Tool back to the original parameters you would follow the same process as you have already done in the above steps and add the following Levels back into the Parameters section of the indicator.