How to Draw Stocks Trading Fib Expansion

How Do I Use Stock Fib Expansion Levels Technical Indicator on Stocks Chart?

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

To draw Stock Fib Expansion levels on the stock 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 Trading Fibo Expansion Technical Indicator is plotted using Three chart points as illustrated and shown on the stocks trading example illustrated & explained below of how to plot the Stock Fib Expansion Technical Indicator.

The Stock Fibonacci Expansion examples illustrated & explained below shows the 3 Chart Points where the Stock Trading Fibo Expansion technical indicator is drawn, marked as Chart point 1, Chart point 2 and 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 Fibonacci Expansion Indicator Tool examples illustrated and described below.

How to Trade With Stock Fib Expansion - How to Draw Stock Fib Expansion Levels Technical Indicator on Stock Charts

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

Drawing Stocks Fibo Expansion Levels Technical Indicator on an Upward Stocks Trend

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

On the Stock Trading Fibonacci Expansion indicator example illustrated and explained below you can see that the Stock Fibonacci Expansion tool is drawn along the direction of the stock trend, since the stock trend is upward - the Stock Fibonacci Expansion indicator is drawn upward.

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

Drawing Stock Trading Fibo Expansion Indicator on an Upwards Stock Trend - Stock Trading Fibo Expansion Trading Tool

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

Drawing Stocks Fibo Expansion Levels Technical Indicator on a Downwards Stocks Trend

Since we use the Stock Trading Fibonacci Expansion indicator tool to estimate take profit levels, how do we draw Stock Fibonacci Expansion in a downwards Stock trend?

We draw the Stock Trading Fibo Expansion tool from chart point 1 to chart point 2 to chart point 3 as illustrated and shown on stocks trading examples illustrated and described below. Remember we always draw this Stock Fibo Expansion tool in direction of the stocks trend. In the Stock Fibonacci Expansion examples illustrated & explained below, can you figureout what direction we have drawn it? That's right - downwards direction.

Try & identify the difference between how we have plotted Stock Trading Fibonacci Expansion indicator above and how Stock Trading Fibonacci Expansion indicator is drawn below. This time you would also have used Stock Trading Fibonacci Expansion level 100.0%, just where the stocks price reached as illustrated on the stocks trading examples illustrated and described below. That would have been a good take profit area.

Drawing Stock Trading Fibo Expansion Indicator on a Downward Stock Trend - Stock Trading Fibo Expansion Trading Tool

From the Stock Trading Fibonacci Expansion indicator example above, after plotting this Stock Trading Fibo Expansion tool there are two levels which are used to show the profit taking areas, these 2 Stock Trading Fibo Expansion zones are plotted as horizontal lines across the stock price chart marked as 61.80% Stocks Fibonacci Expansion Level & 100% Stock Fibonacci Expansion Level.