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How to Draw Fibo Expansion on Down Bitcoin Trend

Drawing Fibonacci Retracement for Bitcoin Downtrend Analysis

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 out 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 btcusd 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 examples of the Fibo Expansion tool mentioned above, once this Fibonacci Expansion tool is applied, two levels are established to demonstrate and illustrate the profit-taking and booking levels. These two Fibonacci Expansion levels are represented as horizontal lines across the trading chart, labeled and marked as the 61.8% Crypto Fibonacci Expansion Level and the 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 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 identifies three chart points where the Fibo Expansion indicator is applied and labeled as Chart Point 1, Point 2, and Point 3 for clarity.

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

Applying Fibo Extension Tools to Downward Bitcoin Trends

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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