Stock Trading Fib Extension Tutorial

We use Stock Fibonacci Extension Levels to estimate where the stock trend movement will reach. There are Two important Stock Trading Fibo Extension levels: 61.8% and 100% Stock Fibonacci Extension Levels, these are used for profit taking.

To draw Stock Trading Fibo Extension levels on MT4 stocks chart we wait until the stocks price retracement is complete and the stocks price starts to move in original direction of the Stock trend. Where the stocks price retracement reaches is used as chart point 3. Stock Fibonacci Extension MT4 Indicator is plotted using three chart points as shown on the stocks trading example illustrated & explained below of how to plot the Stock Fib Extension Trading Indicator MetaTrader 4 Tool.

The Stock Fibo Extension MetaTrader 4 Stock Trading Indicator examples illustrated & explained below shows the 3 Chart Points where the Stock Fibo Extension MetaTrader 4 indicator is drawn, marked as Chart point 1, Chart point 2 & Chart point 3.

Chart point 1 is where the stock trend started, Chart point 2 is where the stock trend pulled back and retraced & Chart point 3 is where the stock retracement reached as shown on the Stock Fibo Extension MetaTrader 4 Stocks Trading Indicator Tool examples illustrated and described below.

Stock Fibonacci Extension Tutorial - Stocks Trading Fib Extension Technical Indicator Guide - Stock Fibonacci Extension Levels Tutorial

Stock Fibonacci Extension Tutorial - Stocks Trading Fib Extension Technical Indicator Explained - Stock Fibonacci Extension Levels Tutorial

Please note where these Stock Trading Fibo Extension areas are drawn - Stock Trading Fibo Extension zones are drawn above the MetaTrader 4 Fibonacci indicator, these are the chart points where a trader will set the takeprofit orders using these Stock Trading Fibo Extension Levels - 61.8% and 100.0% Stock Fibonacci Extension Areas.

Upward Stock Trend - Stock Fibonacci Extension Tutorial - Stocks Trading Fib Extension Technical Indicator Explained - Stock Fibonacci Extension Levels Tutorial

We use Stock Fibonacci Extension Levels to estimate where the stock trend movement will reach. There are Two important Stock Fibonacci Extension levels: 61.80% Stocks Fibo Extension Level & 100% Stock Fibonacci Extension Level, these Stock Fibonacci Extension Levels are used for profit taking.

On the Stock Fibo Extension MetaTrader 4 indicator example illustrated and explained below you can see that the Stock Fibo Extension MetaTrader 4 technical indicator is plotted along the direction of the stock trend, since the stock trend is upward - the MetaTrader 4 Stock Fib Extension technical indicator is drawn upwards.

These Stock Trading Fibo Extension levels are shown as horizontal lines above the Stock Fibo Extension MetaTrader 4 technical indicator, showing profit taking areas. In the stocks trading examples illustrated and described below if you had used the 100.0% Stock Fibonacci Extension level the you would have made good profit from trade set up.

Upward Stock Trend - Stock Fibonacci Extension Tutorial - Stocks Trading Fib Extension Technical Indicator Guide - Stock Fibonacci Extension Levels Tutorial

Stocks Trading Fib Extension Technical Indicator Guide - Stock Fibo Extension Levels Tutorial

From the above Stock Fibo Extension MetaTrader 4 indicator examples, the upwards stock trend continued and both 61.8% & 100.0% Stock Fibonacci Extension levels were all hit after which stocks price retraced again after getting to the 100.0% Stock Trading Fibo Extension level.

Stocks Fibonacci Extension Tutorial

Since we use the Stock Fibo Extension MetaTrader 4 indicator tool to estimate take profit levels, how do we draw MetaTrader 4 Stock Trading Fibo Extension in a downwards Stock trend?

We draw the Stock Fibo Extension MetaTrader 4 stock tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the stocks trading examples illustrated and described below. Remember we always draw this Stock Fibo Extension MetaTrader 4 indicator tool in direction of the stocks trend. In the Stock Trading Fib Extension examples illustrated & explained below, can you determine what direction we have drawn it? That's right - downward direction.

Try & identify the difference between how we have plotted Stock Fib Extension indicator above & how Stock Fibonacci Extension technical indicator is drawn below. This time you would also have used Stock Trading Fib Extension level 100.0%, just where the stocks price reached as illustrated on the stocks example illustrated & explained below. That would have been a good take profit level.

Downward Stock Trend - Stock Fibonacci Extension Tutorial - Stocks Trading Fib Extension Technical Indicator Explained - Stock Fibonacci Extension Levels Tutorial

Stocks Trading Fib Extension Technical Indicator Explained - Stock Fibo Extension Levels Tutorial

From the Stock Fibo Extension MetaTrader 4 indicator examples above, after plotting this MetaTrader 4 Stock Trading Fibo Extension tool there are two levels that are used to show the profit taking areas, these 2 Stock Trading Fibo Extension areas are drawn as horizontal lines across the stock price chart marked as 61.80% Stocks Fibo Extension Level & 100% Stock Fib Extension Level.