How Do I Draw Fibonacci Expansion Levels on Downward Bitcoin Trend?
How Do I Trade Bitcoin and Draw Fibonacci Expansion Levels on Downward Bitcoin Trend?
We draw the Fibonacci Expansion 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 draw this Fibonacci Expansion tool in direction of the cryptocurrency trend. In the Fibonacci Expansion example illustrated below, can you figure what is the direction which we have drawn it? That's right - downwards direction.
As a trader you would also have used Fibonacci Expansion level 100.0%, just where the bitcoin price reached as illustrated on the Fibonacci Expansion example illustrated below. That would have been a good bitcoin take profit area.
How Do You Draw Fibonacci Expansion Levels on Downward Crypto Trend?
From the Fibonacci Expansion Indicator tool example above, after plotting this Fibonacci Expansion Indicator tool there are two levels that are used to show the bitcoin profit taking levels - these two Fibonacci Expansion levels are represented as horizontal lines across the cryptocurrency chart marked as 61.8% BTCUSD Fibo Expansion Level & 100% Fibo Expansion Level.
Interpretation of How Do I Draw Fibonacci Expansion Levels on Cryptocurrency Charts?
Bitcoin traders Fibonacci Expansion levels to estimate where the bitcoin price movement will reach. There are 2 commonly used Fibonacci Expansion areas: 61.8% Fibonacci Expansion Level and 100% Fibonacci Expansion Levels - these fibonacci expansion levels are used for setting bitcoin taking profit levels.
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 Bitcoin trend. Where the bitcoin price retracement reaches is used as bitcoin chart point 3. Fibonacci Expansion Bitcoin Indicator tool is drawn using three bitcoin chart points as illustrated on the Fibonacci expansion cryptocurrency trading example illustrated below of how to draw the Fibonacci Expansion Technical Indicator Tool.
The Fibonacci Expansion example illustrated below shows the 3 Cryptocurrency Chart Points where the Fibonacci Expansion Indicator is drawn, marked as Cryptocurrency Chart point 1, Cryptocurrency Chart point 2 and Cryptocurrency Chart point 3.
Cryptocurrency Chart point 1 is where the bitcoin trend started, Cryptocurrency Chart point 2 is where the bitcoin price pulled back & 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 Trade Crypto and Draw Fibonacci Expansion Levels on Downward Crypto Trend?
Please note where these Fibonacci Expansion levels are plotted - Fibo Expansion levels are drawn above the Fibonacci cryptocurrency indicator, these are the btcusd chart points where a trader will set the bitcoin take-profit orders using these Fibonacci Expansion Levels - 61.8% Fibonacci Expansion Level and 100.0% Fibo Expansion Level.
How Do You Draw Fibonacci Expansion Levels on Downward Bitcoin Trend?
