How Do You Analyze Fibo Expansions on Charts?
How Do I Read Fibo Expansions on Charts?
To Calculate Fibonacci Expansion areas on charts we use the Fib Expansion Indicator
What are the Fibo Expansions?
- 61.80% Fib Expansion Level
- 100% Fibo Expansion Level
We use Fibonacci expansion levels to estimate where the price movement will reach. There are two important fibonacci expansion levels: 61.80% & 100% Fibonacci Expansion levels, these levels are used for taking profit.
To draw Fibonacci expansion levels trade technical indicatorwe use Three chart points.
To draw Fibo expansion levels we wait until 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.
The example shown & described below displays the Three Chart Points where the Fibo expansion indicator is plotted, labeled as chart point 1, 2 and 3. Point 1 is where the price trend started, Point 2 is where the price trend retraced and xauusd trading point 3 is where the price retracement reached as displayed on the example shown and described below.
How Do You Interpret Fibo Expansions on Charts? - Fibo Expansion Indicator Guide
The two Fibonacci expansion levels 61.8 percent & 100 Percent Fibo Expansion areas were then drawn above the Fibo Expansion Indicator as shown on the above example.
How Do You Analyze Fibo Extension Levels on Charts?
