How Do You Analyze Fibonacci Extension Levels on Bitcoin Charts?
Bitcoin Trade Fibonacci Extension Levels on Bitcoin Charts
To Calculate Fibonacci Expansion levels on charts we will use the Fibonacci Expansion Indicator
What are the Fibonacci Expansion Levels in Bitcoin Trading?
- 61.80% Fib Expansion Level
- 100% Fibo Extension Level
We use Fib extension levels to estimate/gauge where the bitcoin price move will reach. There are 2 important Fib extension levels in bitcoin trading; 61.8% & 100% Fib Expansion areas, these points are used for taking profit.
To draw Fib extension levels bitcoin crypto indicatorwe use 3 bitcoin chart points.
To draw Fibonacci extension levels on the charts we wait until the bitcoin price retracement is complete & the trading instrument begins to move in the original direction of the Bitcoin trend. Where the bitcoin price retracement reaches and gets to is used as point 3.
The Fibonacci extension cryptocurrency indicator example shown below shows the 3 Bitcoin Chart Points where the Fibonacci extension bitcoin indicator is drawn, labeled and marked as cryptocurrency chart point 1, 2 & 3. Bitcoin Crypto Currency Point 1 is where bitcoin price trend started, BTCUSD Crypto Point 2 is where bitcoin price trend retraced and cryptocurrency chart point 3 is where the bitcoin price retracement reached as is shown on the cryptocurrency example shown below.
Fibo Extension Bitcoin Indicator Explained
The two Fib extension levels 61.8% & 100% Fibo Extension areas were then drawn on the cryptocurrency chart above the Fibonacci Expansion Indicator like is shown on the Fibonacci extension cryptocurrency indicator above example.
How Do I Read Fibo Extension Levels on Bitcoin Charts
Learn More Lessons & Tutorials:
- How to Draw Fibo Extension Levels in Downwards BTC/USD Trend
- How Do I Download BTCUSD Trade MT4 Trade Platform?
- How Do I Open a Live MT4 Account in MetaTrader 4 Trade Platform?
- How Do I Analyze BTCUSD System Signals?
- How Do I Use Fibo Pullback on Trade Platform Software?
