How to Draw Metals Fibonacci Projection on Downwards Metals Trading Trend
Drawing Fib Projection Levels on a Downwards Metals Trend
We draw the Fibonacci Projection 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 Fibonacci Projection tool in the direction of the metal trend. In the Fibonacci Projection example illustrated and explained below, can you figure what is direction that we have drawn it? That's right - downwards direction.
As a trader you would also have used Fibonacci Projection level 100.0%, just where the metals price reached as illustrated on the Fibonacci Projection example illustrated and explained below. That would have been a good take profit area.
How to Draw Metals Fibonacci Projection on Downwards Metals Trading Trend
From the Fibonacci Projection technical indicator tool example above, after drawing this Fibonacci Projection technical indicator tool there are 2 levels that are used to show the profit taking levels, these two Fibonacci Projection levels are plotted as horizontal lines across the metals chart marked as 61.80%Fibonacci Projection Level & 100% Fibo Projection Level.
Explanation of How to Draw Fibonacci Projection Zones on Metal Charts
We use Fibonacci Projection levels to estimate where the metals trend movement will reach. There are 2 oftenly used Fibonacci Projection levels: 61.8% Fibonacci Projection Level and 100% Fibonacci Projection Levels, these are used for setting taking profit levels.
To draw Fibonacci Projection 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. Fibonacci Projection Indicator tool is drawn using three chart points as shown on the metal trading example illustrated & explained below of how to draw the Fib Projection Indicator Tool.
The Fibonacci Projection examples illustrated and described below shows the 3 Chart Points where the Fibonacci Projection indicator is drawn, 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 Fib Projection Technical Indicator Tool examples illustrated and described below.
How to Draw Fibonacci Projection Metals Indicator on Downwards Metals Trading Trend
Please note where these Fibonacci Projection levels are plotted - Fibo Projection zones are plotted above the Fibonacci indicator, these are the chart points where a trader will place the take-profit orders using these Fibonacci Projection Levels - 61.8% Fibonacci Projection Level and 100.0% Fibonacci Projection Level.
