Fibonacci Expansion Indicator Explained

To Calculate Fib Expansion levels on crypto charts we use the Fibo Expansion Indicator

What are the Fibonacci Expansion Levels?

• 61.80% Fibo Expansion Level
• 100% Fib Expansion Level

We use Fibo expansion areas to estimate where the bitcoin price movement will reach. There are 2 important fibonacci expansion areas: 61.8% and 100% Fibonacci Expansion levels, these level are used for taking profit.

To draw Fib expansion we use 3 chart points.

To draw Fibonacci expansion levels we wait until the bitcoin price retracement is complete and bitcoin price starts to move in the original direction of the Bitcoin trend. Where the retracement reaches is used as point 3.

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

How Do You Calculate Fibonacci Expansion Levels on Crypto Charts?

The two Fibo expansion levels 61.8% & 100% Fibonacci Expansion levels were then drawn above the Fibonacci Expansion Indicator as shown on the cryptocurrency trading example above.