What is Difference between Metals Fibonacci Retracement & Metals Trading Fibonacci Extension?
How to use Metal Fibonacci Retracement & Extension and the Difference between Metal Fibonacci Retracement & Extension
Metals Trading Fib Retracement Levels
Fibo retracement is drawn between 2 chart points but Fibo extension is plotted using Three chart points.
Metals Trading Fibonacci Retracement Level example illustrated and explained below where the metals trend is heading down between Chart point 1 & Chart point 2, then after Chart point 2 the metals price retraces then it continues moving upwards in the original upward metal trend. Note that this Metals Fibonacci Retracement Levels indicator is drawn from Chart point 1 to Chart point 2 in the direction of the market trend.
Metals Fib Retracement Levels - How to Draw Metals Fib Retracement Zones
Metal Fibonacci Extension Levels
Fibo retracement is drawn between 2 chart points but Fibo extension is plotted using Three chart points.
To draw these Metals Fibo Extension zones 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 Three for Fibo extension.
The Metals Fibonacci Extension example illustrated and explained below shows the 3 chart Points where the Metals Fibonacci Extension indicator is drawn, marked as chart point 1, 2 & 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 retracement reached as displayed on the Metals Fibonacci Extension examples illustrated and explained below.
Metals Fibo Extension Levels - How to Draw Metals Fibo Extension Zones
Please note where these Metals Fib Extension levels are drawn - Metals Fibo Extension zones are plotted above the Metals Fibonacci Extension indicator, these are the points where a trader will place the take-profit orders.
