How Do I Draw Fibonacci Extension Levels on Upward Bitcoin Trend?
How Do I Trade Bitcoin and Draw Fibonacci Extension Levels on Upward Bitcoin Trend?
We use Fibonacci Extension levels to estimate where the bitcoin trend movement will reach. There are 2 oftenly used Fibo Extension areas: 61.8% Bitcoin Fib Extension Level & 100% Fib Extension Level, these Fibonacci Extension Levels are used for setting bitcoin take profit areas.
On the Fibonacci Extension indicator example illustrated below you can see that the Fibonacci Extension technical indicator is plotted along the direction of the bitcoin trend, since the bitcoin trend is up - the Fibonacci Extension technical indicator is plotted upwards.
These Fibo Extension zones are displayed as horizontal lines above the Fibonacci Extension indicator, showing bitcoin profit taking areas. In the bitcoin example illustrated below if you had used of 100.0% Fibo Extension level you would have made a nice profit from using this trading setup.
How Do You Draw Fibonacci Extension Levels on Upward Crypto Trend?
From the above Fibonacci Extension indicator tool example, the upward bitcoin trend continued & both 61.80% & 100.0% Fibo Extension zones were all hit after which the bitcoin trading price retraced again after getting to the 100.0% Fibonacci Extension level.
From the Fibo Extension tool examples above, after plotting this Fibonacci Extension tool there are two levels that are used to show the bitcoin profit taking areas, these two Fibo Extension levels are plotted as horizontal lines across the btcusd chart marked as 61.8% Bitcoin Fib Extension Level & 100% Fib Extension Level.
Explanation of How Do I Draw Fibonacci Extension Levels on Cryptocurrency Charts?
We use Fibo Extension Zones to estimate where the bitcoin trend movement will reach. There are 2 important Fibo Extension areas: 61.80% & 100% Fibo Extension Levels, these are used for taking profit.
To draw Fibo Extension levels on the btcusd chart we wait until the bitcoin price retracement is complete & the bitcoin price starts to move in the original direction of the Bitcoin trend. Where the bitcoin price retracement reaches is used as bitcoin chart point 3. Fibonacci Extension Technical Indicator is plotted using three bitcoin chart points as shown on the Fibonacci extension bitcoin example illustrated below of how to draw the Fibonacci Extension Technical Indicator.
The Fibonacci Extension example illustrated below shows the 3 Cryptocurrency Chart Points where the Fibonacci Extension technical indicator is drawn, marked as Cryptocurrency Chart point 1, Cryptocurrency Chart point 2 & Cryptocurrency Chart point 3.
Cryptocurrency Chart point 1 is where the bitcoin trend started, Cryptocurrency Chart point 2 is where the bitcoin trend pulled back and retraced & Cryptocurrency Chart point 3 is where the bitcoin retracement reached as shown on the Fibonacci Extension Indicator example illustrated below.
How Do You Trade Crypto and Draw Fibonacci Extension Levels on Upward Crypto Trend?
Please note where these Fibonacci Extension areas are plotted - Fibo Extension levels are plotted above the Fibonacci bitcoin indicator, these are the btcusd chart points where a trader will set the bitcoin take profit orders using these Fib Extension Levels - 61.80% & 100.00% Fibo Extension Areas.
How Do You Draw Fibonacci Extension Levels on Upward Bitcoin Trend?
