How Do You Draw Fibo Extensions on Upward Trend?
How Do I Draw Fibo Extensions on Upward Trend?
We use Fibo Extension levels to estimate where the trend movement will reach. There are two commonly used Fib Extension areas: 61.80 % XAUUSD Trading Fibo Extension Level & 100 % Fib Expansion Level, these Fibo Extensions are used for setting tp order levels.
On the Fibo Extension indicator example shown & described below you can see that the Fibo Extension technical indicator tool is drawn along the direction of the trend, since the trend is up - the Fibo Extension technical indicator is plotted up-wards.
These Fib Expansion levels are displayed as horizontal lines above the Fib Extension technical indicator, showing profit taking areas. In the example shown & described below if you had used of 100.0 % Fibo Extension level you would have made good profit from using this setup.
How Do You Draw Fibo Extensions on Upward Trend?
From the above Fibonacci Extension example, the upward trend continued & both 61.80% and 100.00% Fibo Extension zones were all hit after which the price retraced again after getting to the 100.00% Fibonacci Extension area.
From the Fibo Extension technical indicator examples above, after drawing this Fibo Extension tool there are two levels that are used to show the profit taking areas, these two Fib Expansion levels are drawn as horizontal lines across the chart marked as 61.8% XAUUSD Trading Fibo Extension Level and 100 % Fib Expansion Level.
Explanation of How Do I Draw Fibo Extensions on Charts?
We use Fibonacci Extension Levels to try to project where trend move will reach. There are Two critical Fibonacci Extension areas: 61.80% and 100 % Fibonacci Expansion Areas, these are used for taking profit.
To draw Fibonacci Extension levels on the chart we wait til the price retracement is complete and the price starts to move in original direction of the trend. Where the price retracement reaches is used as chart point 3. Fibonacci Expansion Technical Indicator is plotted using three chart points as shown on the Fibo extension example shown and explained below of how to draw the Fibonacci Extension Indicator.
The Fibo Expansion example shown & described below displays the 3 Chart Points where the Fibo Extension technical indicator is plotted, labeled as Chart point 1, Chart point 2 & Chart point 3.
Point 1 is where the market trend started, Point 2 is where the trend pulled back & retraced & Chart point 3 is where the retracement reached as portrayed on the Fibonacci Expansion Technical Indicator example shown and explained below.
Interpret & Draw Fibo Extensions on Upward Trend?
Please note where these Fib Expansion levels are drawn - Fib Extension levels are drawn above the Fib technical indicator, these are the chart points where a trader will set takeprofit orders using these Fibo Extensions - 61.80% & 100.00% Fibo Extension Levels.
How Do You Draw Fibo Extensions on Upward Trend
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