How Do You Interpret Fib Retracement vs Fibonacci Expansion?
How Do I Analyze Fibonacci Retracement vs Fibonacci Expansion?
Fibonacci retracement is drawn between two points but Fib expansion is drawn using 3 chart points.
Fibonacci Retracement Technical Indicator example illustrated and explained below - where the trend is moving downwards between Chart point 1 and Chart point 2 - then after Chart point 2 the price retraces then it continues moving up in the original upwards trend. Note that this Fibonacci Retracement Technical Indicator is drawn from Chart point 1 to Chart point 2 in the direction of the trend.
How Do You Interpret Fib Retracement vs Fibonacci Expansion?
XAUUSD Fibonacci Extension Levels
Fib retracement indicator is drawn between two chart points but Fib expansion is drawn using three chart points.
To draw these Fib Expansion levels traders will wait until the price retracement is complete & price starts to head in original direction of trend. Where the price retracement reaches - this point is used as chart point 3 for Fibonacci expansion trading indicator.
The Fibonacci Extension Technical Indicator example depicted and explained below portrays the Three chart areas where the Fibonacci Expansion Technical Indicator is drawn, labeled as chart point 1, 2 and 3. Point 1 is where trend started, Point 2 is where price pulled back & retraced and Chart point 3 is where the price retracement reached as illustrated on the Fibonacci Expansion Technical Indicator example depicted & explained below.
How Do I Analyze Fib Retracement vs Fibonacci Expansion?
Please note where these Fibonacci expansion levels are drawn - Fibonacci Expansion areas are drawn above the Fibo Extension Technical Indicator - these are the points where a trader will set take-profit orders.
How Do You Read Fib Retracement vs Fibonacci Expansion?
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