How to Draw Stock Trading Fib Extension on Upward Stock Trading Trend
Drawing Stocks Fibo Extension Areas Technical Indicator on an Upward Stock Trend
We use Stock Fibonacci Extension Levels to estimate where the stock trend movement will reach. There are 2 oftenly used Stock Fibonacci Extension levels: 61.80% Stocks Fibo Extension Level & 100% Stock Fibonacci Extension Level, these Stock Fibo Extension Levels are used for setting take profit levels.
On the Stock Trading Fib Extension indicator example illustrated and explained below you can see that the Stock Trading Fib Extension tool is drawn along the direction of the stock trend, since the stock trend is up - the Stock Fib Extension technical indicator is drawn upwards.
These Stock Trading Fibo Extension levels are shown as horizontal lines above the Stock Trading Fibo Extension technical indicator, showing the profit taking areas. In the stocks trading examples illustrated and described below if you had used the 100.0% Stock Trading Fibo Extension level the you would have made a nice profit from the trade set up.
How to Draw Stock Trading Fib Extension on Upward Stock Trading Trend
From the above Stock Trading Fib Extension indicator tool example, the upward stock trend continued and both 61.8% & 100.0% Stock Fibonacci Extension levels were all hit after which the stocks price retraced again after getting to the 100.00% Stock Trading Fibo Extension level.
From the Stock Trading Fibo Extension indicator tool example above, after plotting this 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 chart marked as 61.8% Stocks Fibo Extension Level & 100% Stock Fib Extension Level.
Explanation of How to Draw Stocks Fibo Extension Areas Technical Indicator on Stocks Charts
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 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 Extension 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 Extension Technical Indicator.
The Stock Fibo Extension examples illustrated and described below shows the 3 Chart Points where the Stock Trading Fib Extension technical indicator is plotted, 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 Trading Fib Extension Technical Indicator Tool examples illustrated and described below.
How to Draw Stock Trading Fib Extension Technical Indicator on Upwards Stock Trading Trend
Please note where these Stock Trading Fibo Extension areas are drawn - Stock Trading Fibo Extension areas are drawn above 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.
