How to Draw Metals Trading Fibonacci Extension

How Do I Use Metal Fibonacci Extension Levels Metals Technical Indicator on Metal Chart?

We use Metals Fibo Extension Zones to estimate where the metals trend movement will reach. There are Two important Metals Fibo Extension levels: 61.8% & 100% Metals Fibonacci Extension Areas, these are used for taking profit.

To draw Metals Fibonacci Extension levels on the metals chart 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 metals price retracement reaches is used as chart point 3. Metals Fibonacci Extension Trading Indicator is drawn using Three chart points as shown on the metal trading example illustrated & explained below of how to draw the Metals Fibonacci Extension Technical Indicator.

The Metals Fibonacci Extension example illustrated and explained below shows the 3 Chart Points where the Metals Fibonacci Extension indicator is plotted, marked as Chart point 1, Chart point 2 & Chart point 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 Fibonacci Extension Technical Indicator Tool examples illustrated & described below.

How to Trade With Metals Fibonacci Extension - How to Draw Metals Fibonacci Extension Levels Indicator on Metals Charts

Please note where these Metals Fib Extension levels are drawn - Metals Fib Extension zones are plotted above the Fibonacci indicator, these are the chart points where a trader will place the take-profit orders using these Metals Fibo Extension Levels - 61.8% and 100.0% Metals Fibo Extension Levels.

Drawing Metal Fibonacci Extension Levels Indicator on an Upwards Metals Trend

We use Metals Fibo Extension Zones to estimate where the metals trend movement will reach. There are Two important Metals Fibo Extension levels: 61.8% Metal Fibo Extension Level & 100% Metals Fib Extension Level, these Metals Fib Extension Areas are used for taking profit.

On the Metals Fibonacci Extension indicator example illustrated and explained below you can see that the Metals Fibonacci Extension technical indicator is drawn along the direction of the metals trend, since the metals trend is upward - the Metals Fibo Extension technical indicator is drawn upwards.

These Metals Fibo Extension zones are shown as horizontal lines above the Metals Fibo Extension technical indicator, showing profit-taking areas. In the metal trading examples illustrated and described below if you had used the 100.00% Metals Fibonacci Extension level you would have made a nice profit from using this setup.

Drawing Metals Fibonacci Extension Indicator on an Upwards Metals Trend - Metals Fibonacci Extension Tool

From the above Metals Fibonacci Extension indicator examples, the upwards metals trend continued and both 61.8% & 100.00% Metals Fibo Extension zones were all hit after which metals price retraced again after getting to the 100.00% Metals Trading Fibo Extension level.

Drawing Metal Fibonacci Extension Levels on a Downward Metal Trend

Since we use the Metals Fibonacci Extension indicator tool to estimate take profit levels, how do we draw Metals Trading Fibonacci Extension in a downward Metals trend?

We draw the Metals Fibonacci Extension tool from chart point 1 to chart point 2 to chart point 3 as shown on the metal trading examples illustrated and described below. Remember we always draw this Metals Fibonacci Extension tool in the direction of the metal trend. In the Metals Fibonacci Extension example illustrated and explained below, can you figure what is direction that we have drawn it? That's right - downwards direction.

Try and spot difference between how we have drawn Metals Fibo Extension indicator above & how Metals Fibo Extension technical indicator is drawn below. This time you would also have used Metals Fibonacci Extension level 100.0%, just where the metals price reached as illustrated on the metal trading examples illustrated and explained below. That would have been a good take profit area.

Drawing Metals Fibonacci Extension Indicator on a Downward Metals Trend - Metals Fibonacci Extension Tool

From the Metals Fibonacci Extension indicator example above, after drawing this Metals Fibonacci Extension tool there are 2 levels that are used to explain the profit taking areas, these 2 Metals Fibonacci Extension levels are drawn represented as horizontal lines across the metals price chart marked as 61.8% Metals Fibo Extension Level & 100% Metals Fib Extension Level.