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