How Do You Draw Fibo Extension Levels on Upward Trend?
How Do I Draw Fibo Extension Levels on Upward Trend?
We use Fibo Expansion levels to estimate where the market trend movement will reach. There are two commonly used Fib Expansion areas: 61.8% Fibo Expansion Level and 100% Fibonacci Expansion Level, these Fibo Extension Levels are used for setting take profit levels.
On the Fibo Expansion Indicator example shown & described below you can see that the Fibo Expansion Indicator tool is drawn along the direction of the trend, since the trend is upward - the Fibo Expansion Indicator is drawn upwards.
These Fib Expansion levels are displayed as horizontal lines above the Fibo Expansion Indicator, showing profit booking zones. In the trading examples described below if you had used the 100.00% Fibo Expansion level you would have made a good profit from this trade setup.
How Do I Draw Fibo Extension Levels on Upward Trend?
From the above Fib Expansion Indicator tool example, the upward trend continued & both 61.80% and 100.00% Fib Expansion areas were all hit after which the price retraced again after getting to the 100.00% Fib Expansion area.
From the Fibo Expansion Indicator tool example above, after drawing this Fib Expansion tool there are two levels that are used to show the profit booking zones, these two Fib Expansion zones are drawn as horizontal lines across the chart marked as 61.8 percent Gold Fibo Expansion Level & 100% Fibonacci Expansion Level.
Explanation of How Do I Draw Fib Extension Levels on Charts?
We use Fibonacci Expansion areas to estimate where the market trend movement will reach. There are Two important Fib Expansion areas: 61.80% & 100% Fib Extension Levels, these are used for profit taking.
To draw Fibonacci Expansion levels on the chart we wait until the price retracement is complete & price begins heading in original direction of the trend. Where the price pull back gets-to is used as point 3. Fib Expansion Indicator is drawn using three chart points as illustrated on the Fib expansion examples illustrated & explained below of how to draw the Fibo Expansion Technical IndicatorTool.
The Fibo Expansion example shown & described below portrays the 3 Chart Points where the Fib Expansion Indicator is drawn, marked as Chart point 1, Chart point 2 and Chart point 3.
Chart point 1 is where trend started, Chart point 2 is where trend pulled back and retraced and Chart point 3 is where the retracement reached as displayed on the Fib Expansion Indicator Tool examples displayed & described below.
Interpret and Draw Fibo Extension Levels on Upward Trend?
Please note where these Fibo Expansion zones are drawn - Fib Expansion zones are plotted above the Fibonacci indicator, these are the chart points where a trader will set gold take profit orders using these Fibo Extension Levels - 61.8% and 100.0% Fibo Expansion Levels.
How Do You Draw Fibo Extension Levels on Upward Trend
