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How to Draw Fibonacci Extension on Up Bitcoin Trend

How Do You Draw Fibo Extension for Bitcoin Uptrend?

We use Fib Expansion Levels to try to project where the btcusd crypto trend movement will get to. There are 2 commonly used Fibo Extension areas: 61.80 % BTCUSD Fibonacci Expansion Level and 100 % Fibo Extension Level, these Fibonacci Expansion Levels are used for setting take profit areas.

On the Fibo Expansion example illustrated below you can see the Fibonacci Extension indicator is plotted along the direction of the btcusd crypto trend, since the bitcoin trend is up - the Fibonacci Extension indicator is plotted upward.

These Fibonacci Expansion levels are illustrated as horizontal lines above the Fibo Expansion technical indicator, showing the taking and booking profit zones. In the example illustrated below if you had used of 100.00% Fibo Extension level you would have made good profit from using this trade setup.

Drawing Fibonacci Extensions on Rising Bitcoin Trends - Steps for Bitcoin Fibo Extensions in Uptrends

How Do I Draw Fibo Extension on Up Crypto Trend

From the above Fibonacci Extension example, the upwards bitcoin trend continued and both 61.80% and 100.0 % Fibo Extension levels were all hit after which the bitcoin price retraced again after getting to the 100.00% Fibonacci Extension area.

The Fibonacci expansion tool works like the examples above. After drawing it, note the 61.8% and 100% levels on your BTCUSD chart. These lines indicate common take-profit spots.

Explanation of How to Draw Fibo Expansion Levels on Charts

We use Fib Extension Levels in an effort to guess where the btcusd crypto trend will likely go. The Two most important Fibo Extension spots: 61.80% & 100 % Fib Expansion Spots, are used to secure and record earnings.

To draw Fibo Expansion levels on the chart we wait until the bitcoin price retracement is complete & the btcusd crypto price starts to move in the original and initial direction of the BTC/USD Crypto trend. Where the btcusd crypto price pull back reaches and gets to is used as point 3. Fibonacci Expansion Indicator is drawn/plotted using 3 chart points like illustrated on the example shown below of how to draw the Fibonacci Extension IndicatorTool.

The Fibo Extension example illustrated below illustrates the 3 Points where the Fibo Extension indicator is plotted, labeled as Point 1, Chart point two & Chart point 3.

Point 1 is where btcusd crypto trend started, Point 2 is where btcusd trend pulled back & retraced & Chart point 3 is where the retracement reached just as is shown on the Fibonacci Extension Indicator Tool illustration shown below.

Drawing Fibonacci Expansion Lines for Upward Bitcoin Trends

How Do I Draw Fibo Extension Crypto Technical Tool on Up-wards Crypto Trend

Please be aware of the placement of the Fibonacci Expansion levels - these levels are indicated above the Fibonacci tool, which reflects the points at which a btc/usd trader is likely to set take-profit orders at the Fibonacci Expansion Levels of 61.80 % and 100.00 %.

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