How Do I Draw Bitcoin Trading Fibo Expansion Levels?
How Do I Trade Bitcoin and Draw Fibonacci Expansion Levels?
Traders use Fibonacci expansion levels to estimate where the bitcoin trend movement will reach. There are two commonly used Fibonacci expansion levels - 61.8% Fibonacci Expansion Level and 100% Fibonacci Expansion Levels, these fibonacci expansion levels are used for setting bitcoin take profit areas.
To draw Fibo Expansion levels on the cryptocurrency chart we wait until the bitcoin price retracement is complete & the bitcoin price starts to move in the original direction of the cryptocurrency trend. Where the bitcoin price retracement reaches is used as bitcoin chart point 3. Fibonacci Expansion Bitcoin Technical Indicator is plotted using three bitcoin chart points as shown on the Fibonacci expansion cryptocurrency trading example illustrated below of how to draw the Fib Expansion Technical Indicator Tool.
The Fibonacci expansion example illustrated below shows the 3 Cryptocurrency Chart Points where the Fibonacci expansion bitcoin technical trading 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 Expansion Technical Indicator Tool example illustrated below.
How Do You Draw Fibonacci Expansion Levels? - How Do I Draw Fibonacci Expansion Levels?
Please note where these Fib Expansion levels are plotted - Fibo Expansion levels are plotted above the Fib cryptocurrency indicator, these are the btcusd chart points where a trader will set the bitcoin take profit orders using these Fib Expansion Levels - 61.80% & 100.00% Fibo Expansion Areas.
Drawing Fib Expansion Levels on an Upward BTCUSD Trend
We use Fibo expansion areas to estimate where the bitcoin trend movement will reach. There are two commonly used Fibonacci expansion areas: 61.8% Bitcoin Trading Fibonacci Expansion Level & 100% Fibonacci Expansion Level, these Fibonacci Expansion Levels are used for taking profit.
On the Fibonacci expansion cryptocurrency indicator example illustrated below you can see that the Fibonacci expansion cryptocurrency technical indicator is plotted along the direction of the bitcoin trend, since the bitcoin trend is upward - the Fibonacci expansion levels cryptocurrency indicator is drawn upwards.
These Fibo expansion levels are displayed as horizontal lines above the Fibonacci Expansion Indicator, showing bitcoin profit taking areas. In the cryptocurrency trading example illustrated below if you had used of 100.0% Fibonacci expansion level you would have made nice profit from the trade set-up.
Drawing Fibonacci Expansion Levels Bitcoin Indicator on an Upward Bitcoin Trend
From the above Fibonacci expansion cryptocurrency indicator examples, the upwards bitcoin trend continued & both 61.80% & 100.0% Fibonacci expansion levels were all hit after which bitcoin price retraced again after getting to the 100.0% Fibo Expansion level.
Drawing Fib Expansion Areas on a Downwards BTCUSD Trend
Since we use the Fibonacci expansion cryptocurrency indicator tool to estimate bitcoin take profit levels, how do we draw Fibonacci Expansion in a downward Bitcoin trend?
We draw the Fibonacci expansion cryptocurrency indicator tool from bitcoin chart point 1 to bitcoin chart point 2 to bitcoin chart point 3 as shown on the Fibonacci expansion cryptocurrency trading example illustrated below. Remember we always plot this Fibonacci expansion tool in direction of the cryptocurrency trend. In the Fibonacci expansion example illustrated below, can you figure what's the direction which we have drawn it? That's right - downwards direction.
Try & identify the difference between how we have drawn Fibonacci expansion levels cryptocurrency indicator above and how Fibonacci Expansion levels cryptocurrency indicator is drawn below. This time you would also have used Fibonacci expansion level 100.0%, just where the bitcoin price reached as displayed on the Fibonacci expansion levels cryptocurrency trading example illustrated below. This would have been a good bitcoin take profit area.
Drawing Fibonacci Expansion Levels Bitcoin Indicator on a Downward Bitcoin Trend
From the Fibonacci expansion levels cryptocurrency indicator example above, after plotting this Fibonacci expansion levels bitcoin tool there are two levels that are used to show the bitcoin profit taking areas - these two Fibonacci expansion levels are drawn as horizontal lines across the bitcoin price chart marked as 61.80% Bitcoin Trading Fibonacci Expansion Level & 100% Fibo Expansion Level.
How Do You Draw Bitcoin Fib Expansion Levels?
