Trading Bitcoin Interpret the Difference between Fibonacci Retracement Levels and Fibonacci Extension Levels in Bitcoin Trading

Bitcoin Trade the Difference between Fibonacci Retracement Levels and Fibonacci Extension Levels in Bitcoin Trading

Fibonacci Retracement Levels in Bitcoin Trading

Fibo retracement is drawn between 2 cryptocurrency chart points but Fibo extension is plotted using Three bitcoin chart points.

Fibonacci Retracement Level cryptocurrency trading example illustrated below where the bitcoin trend is moving down between Bitcoin Chart point 1 and Bitcoin Chart point 2, then after Bitcoin Chart point 2 the bitcoin price retraces then it continues heading upwards in the original upwards cryptocurrency trend. Note that this Fibonacci Retracement Levels bitcoin indicator is drawn from Bitcoin Chart point 1 to Bitcoin Chart point 2 in direction of the cryptocurrency trend.

Fibo Retracement Levels - How Do I Draw Fibo Retracement Levels

Fibonacci Extension Levels in Bitcoin Trading

Fibo retracement is drawn between 2 cryptocurrency chart points but Fibo extension is plotted using Three bitcoin chart points.

To draw these Fibo Extension levels 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 cryptocurrency chart point 3 for fibonacci extension in cryptocurrency trading.

The Fibonacci Extension cryptocurrency trading example illustrated below shows the 3 cryptocurrency chart Points where the Fibonacci Extension indicator is drawn, marked as cryptocurrency chart point 1, 2 and 3. Bitcoin Chart point 1 is where the bitcoin trend started, Bitcoin Chart point 2 is where the bitcoin trend pulled back & retraced & Bitcoin Chart point 3 is where the bitcoin price retracement reached as illustrated on the Fibonacci Extension cryptocurrency trading example illustrated below.

Fibo Extension Levels - How Do I Draw Fibo Extension Levels

Please note where these Fibo Extension areas are plotted - Fibo Extension levels are drawn above the Fibo Extension indicator, these are the points where a trader will set the bitcoin take profit orders.

How Do I Read the Difference between Fibonacci Retracement Levels and Fibonacci Extension Levels in Bitcoin Trading