How Do You Draw Fibonacci Extensions on Downward Bitcoin Trend?
How Do You Trade Bitcoin and Draw Fibonacci Extensions on Downward Bitcoin Trend?
We draw the Fibonacci Extension indicator tool from bitcoin chart point 1 to bitcoin chart point 2 to bitcoin chart point 3 just as shown on the Fib extension bitcoin example shown below. Remember we always draw this Fibonacci Expansion tool in direction of the cryptocurrency trend. In the Fib Expansion illustration shown below, can you figure what is the direction which we've drawn it? That is right - downwards direction.
As a trader you would also have used Fibo Extension area 100.00%, just where the bitcoin price reached just as illustrated on the Fibonacci Expansion example illustrated below. That would have been a good bitcoin takeprofit level.
How Do I Draw Fibo Extensions on Downward Trend?
From the Fibonacci Expansion tool examples revealed above, after plotting this Fibonacci Extension indicator there are 2 levels that are used to show and display the bitcoin profit booking levels - these two Fibonacci Extension levels are represented as horizontal lines across the btcusd chart labeled & marked as 61.8% Bitcoin Fibo Extension Level and 100% Fib Expansion Level.
Interpretation of How Do I Draw Fibonacci Extensions on Crypto Currency Charts?
Bitcoin Crypto Currency traders Fibonacci Expansion levels to estimate/gauge where the bitcoin crypto price movement will reach. There are 2 commonly used Fibo Extension areas: 61.80% Fib Expansion Level & 100% Fib Expansion Levels - these Fib extension levels are used for setting bitcoin profit booking zones.
To draw Fibonacci Expansion levels on the bitcoin cryptocurrency chart we wait til the btcusd crypto price retracement is complete and the btcusd crypto price begins to move in the original direction of the BTCUSD CryptoCurrency trend. Where the btcusd crypto price retracement reaches and gets to is used as btcusd crypto chart point 3. Fibonacci Expansion Indicator is plotted using three bitcoin chart points as is illustrated on the Fib extension bitcoin example shown below of how to draw the Fibonacci Extension Indicator.
The Fibonacci Expansion illustration illustrated below shows the three Chart Points where the Fibonacci Expansion technical indicator is drawn, labeled as Crypto point 1, CryptoCurrency point 2 and Crypto point 3.
Crypto Point 1 is where btcusd crypto trend started, CryptoCurrency Point 2 is where btcusd crypto price pulled back & retraced and Crypto Point 3 is where bitcoin retracement reached just as shown on the Fib Expansion Indicator example shown below.
How Do You Trade Crypto and Draw Fibonacci Extensions on Downward Trend?
Please note where these Fibonacci Expansion levels are plotted - Fib Expansion levels are drawn above the Fib bitcoin indicator, these are the bitcoin crypto chart levels where a btcusd trader will set the bitcoin takeprofits using these Fibonacci Expansion Levels - 61.8% Fibonacci Expansion Level & 100.0% Fibonacci Expansion Level.
How Do I Draw Fibo Extensions on Downward Bitcoin Trend?
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