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