How to Draw Stock Fibonacci Expansion on Downward Stock Trading Trend
Drawing Stocks Trading Fib Expansion Levels Technical Indicator on a Downward Stocks 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.
As a trader you would also have used Stock Trading Fibonacci Expansion level 100.0%, just where the stocks price reached as illustrated on the Stock Trading Fibonacci Expansion example illustrated and explained below. That would have been a good take profit area.
How to Draw Stock Fibonacci Expansion on Downward Stock Trading Trend
From the Stock Trading Fibo Expansion indicator tool example above, after plotting this Stock Trading Fibonacci Expansion indicator tool there are two levels that are used to show the profit taking levels, these two Stock Trading Fibo Expansion zones are plotted as horizontal lines across the stock chart marked as 61.8% Stock Trading Fibo Expansion Level and 100% Stock Fibonacci Expansion Level.
Explanation of How to Draw Stocks Fib Expansion Levels Technical Indicator on Stocks Charts
We use Stock Trading Fibo Expansion levels to estimate where the stock trend movement will reach. There are 2 oftenly used Stock Fibonacci Expansion levels: 61.80% Stock Trading Fibo Expansion Level and 100% Stock Fibonacci Expansion Levels, these are used for setting taking profit areas.
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 Fibonacci Expansion Indicator tool is drawn using three chart points as 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 Draw Stock Fibonacci Expansion Indicator on Downwards Stock Trading Trend
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% Stock Trading Fibo Expansion Level and 100.0% Stock Fibonacci Expansion Level.
