Trading Bitcoin Interpret the Difference between Fibonacci Retracement Levels & Fibonacci Expansion Levels in Bitcoin Trading
Bitcoin Trade the Difference between Fibonacci Retracement Levels and Fibonacci Expansion Levels in Bitcoin Trading
Fib Retracement Levels in Bitcoin Trading
Fibo retracement is drawn between 2 crypto chart points but Fib extension is drawn using 3 btcusd crypto chart points.
Fibonacci Retracement Level cryptocurrency example shown below where the bitcoin trend is heading down between BTCUSD Crypto Chart point 1 & Bitcoin Crypto Currency Chart point 2, then after Bitcoin Chart point 2 the bitcoin price retraces then it continues moving upwards in the original upward 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 trend.
Fibo Retracement Levels - How Do I Draw Fibonacci Retracement Levels
Fibo Extension Levels in Bitcoin Trading
Fibo retracement is drawn between 2 crypto chart points but Fib extension is drawn using 3 btcusd crypto chart points.
To draw these Fibonacci Extension levels we wait til the bitcoin price retracement is complete and the bitcoin price starts to move in the original direction of the Bitcoin trend. Where the bitcoin price retracement reaches and gets to is used as chart point 3 for Fibonacci extension in cryptocurrency.
The Fibonacci Extension example illustrated below shows the 3 cryptocurrency chart Points where the Fibonacci Expansion technical indicator is drawn, labeled as chart point 1, 2 & 3. BTC/USD Crypto Chart point 1 is where the btcusd crypto trend started, BTC/USD Crypto Chart point 2 is where the btcusd crypto trend pulled back and retraced & BTC/USD Crypto Chart point 3 is where the bitcoin price retracement reached like is shown on the Fibonacci Extension example shown below.
Fib Expansion Levels - How Do I Draw Fibo Extension Levels
Please note where these Fibonacci Expansion levels are drawn - Fib Expansion levels are drawn above the Fibonacci Extension indicator, these are the points where one will set the bitcoin takeprofit orders.
How Do I Read the Difference between Fibonacci Retracement Levels and Fibonacci Expansion Levels in Bitcoin Trading
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