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How to Draw Fibo Expansion on Down Bitcoin Trend

How Do You Draw Fibonacci Retracement Expansion for Bitcoin Downtrend?

We draw the Fib Expansion technical tool from point 1 to chart point 2 to point three like shown on the illustration illustrated and shown below. Remember we always draw this Fib Expansion tool in direction of the trend. In the Fibonacci Expansion example illustrated below, can you figure what is the direction which we've drawn it? That's right - downwards direction.

As a trader you'd also have used Fibonacci Expansion level 100.0 %, just where the bitcoin price reached such as shown on the Fibonacci Extension exemplification illustrated and shown below. That would have been a good take-profit zone.

How to Draw Fibo Expansion in Down Bitcoin Trend

How to Draw Fibo Expansion in Down Crypto Trend

From the Fibo Expansion tool examples above, after drawing this Fibonacci Expansion tool there are 2 levels that are used to show and illustrate the profit taking and booking levels, these 2 Fibonacci Expansion levels are plotted as horizontal lines across the trading chart labeled & marked as 61.8% Crypto Fibonacci Expansion Level and 100% Fib Expansion Level.

Explanation of How to Draw Fib Expansions on Crypto Charts

We use Fibo Extension areas to try to estimate where btcusd crypto trend movement will get to and reach. There are 2 commonly used Fibo Expansion areas: 61.8% Fib Expansion Level and 100% Fibonacci Expansion Areas, these are used for setting booking profit areas.

To draw Fibonacci Expansion levels on the trading chart we wait til the btcusd crypto price retracement is complete & the bitcoin crypto price starts and begins to move in the original direction of the Bitcoin trend. Where the bitcoin price pull back reaches and gets to is used as chart point 3. Fibonacci Expansion tool is drawn using three chart points like is shown on the example illustrated below of how to draw the Fibo Expansion IndicatorTool.

The Fibo Expansion example shown below shows the three Chart Points where the Fibo Expansion indicator is plotted, labeled & marked as Chart point 1, Chart point two and Chart point 3.

Chart point 1 is where bitcoin trend started, Chart point 2 is where bitcoin cryptocurrency trend pulled back and retraced & Chart point 3 is where the price retracement reached like shown & displayed on the Fib Expansion Indicator Tool example shown below.

How to Draw Fibo Extension Levels Bitcoin Technical Tool on Downward Bitcoin Trend

How to Draw Fibo Expansion Crypto Technical Tool on Downward Crypto Trend

Please note where these Fibonacci Expansion levels are plotted - Fib Expansion levels are drawn above the Fib indicator, these are the chart levels where a trader will set the takeprofit orders using these Fibo Extension Levels - 61.8% Fibonacci Expansion Level & 100.0% Fibo Extension Level.

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