How Do I Metals Trade With Metals Trading Fibonacci Expansion?
Fibo expansion is drawn using 3 chart points.
To draw Metals Trading Fibonacci Expansion levels we wait until the metals price retracement is complete and the metals price starts to move in original direction of the Metals trend. Where the retracement reaches is used as chart point 3.
The Fibonacci expansion example illustrated and explained below shows the 3 Chart Points where the Fibonacci expansion indicator is drawn, marked as Chart point 1, 2 and 3. Chart point 1 is where the metals trend started, Chart point 2 is where the metals trend pulled back and retraced & Chart point 3 is where the metals retracement reached as displayed on the Metals Trading Fibonacci Expansion Tool examples illustrated and explained below.
How Do I Metals Trade With Metals Trading Fibonacci Expansion?
Please note where these Metals Trading Fib Expansion zones are drawn - Metals Trading Fibo Expansion zones are plotted above the Fib Indicator, these are the points where the trader will place the take-profit orders using these Metals Fibo Expansion Levels - 61.8% and 100% Metals Fib Expansion Levels.
Drawing Metals Trading Fib Expansion Levels Technical Indicator on an Upward Metal Trend
We use Fibo expansion levels to estimate where the metals trend movement will reach. There are Two important Fibo expansion levels: 61.8% and 100% Metals Trading Fibo Expansion Levels, these are used for taking profit.
On the Fibonacci expansion example illustrated and explained below you can see that the Fibonacci expansion technical indicator is drawn along the direction of the metals trend, since the metals trend is upward - the Fibonacci expansion is drawn upwards.
These Fibonacci expansion levels are displayed as horizontal lines above the Metals Trading Fibonacci Expansion indicator, showing the profit-taking areas. In the metal example illustrated & explained below if you had used 100% Fibonacci expansion you would have made nice profit from this trade setup.
Drawing Metals Trading Fibonacci Expansion Levels Metal Technical Indicator on an Upward Metals Trend - Metals Trading Fibonacci Expansion Levels Strategies in Metals Trading
From the above Fibonacci expansion examples, the upward metals trend continued and both 61.8% & 100.00% Fibonacci expansion levels were all hit after which metals price retraced again after getting to the 100.0 % Metals Fibo Expansion level.
Drawing Metals Trading Fib Expansion Levels Technical Indicator on a Downward Metal Trend
Since we use this Fib expansion tool to estimate take profit levels, how do we draw it in a downwards Metals trend?
We draw the Fibonacci expansion indicator from chart point 1 to 2 to 3 as shown below. Remember we always draw this Fibonacci expansion tool in the direction of the metal trend. In the Fibonacci expansion example illustrated and explained below, can you figure what direction we have drawn it? That is right - downwards direction.
Try and spot difference between how we have drawn Fibonacci expansion above and how Metals Trading Fibonacci Expansion is drawn below. This time you would also have used Fibonacci expansion level 100%, just where the metals price reached as illustrated on the metal trading examples illustrated and explained below. That would have been a nice take profit area.
Drawing Metals Trading Fibo Expansion Levels on a Downward Metals Trading Trend
From Fib expansion example above, after drawing this Fib expansion tool there are 2 levels which are used to show the profit-taking areas, these two Fibonacci expansion levels are drawn as horizontal lines across the metals price chart.
