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 shown 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.
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.
From the Fibonacci Expansion tool exemplifications put on display above, after drawing this Fibonacci Extension tool there are 2 levels which are used to show and illustrate the taking profit zones, these 2 Fibo Expansion levels are plotted as horizontal lines across the trading chart marked & labeled as 61.8% BTCUSD Fibonacci Expansion Level and 100 % Fibonacci Expansion Level.
Explanation of How to Draw Fibo Expansion Levels on Charts
We use Fib Expansion Levels to try to project where the btcusd crypto trend movement will get to. There are Two crucial Fibo Extension areas: 61.80% & 100 % Fib Expansion Areas, these are used for taking and booking profit.
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 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 illustrated and shown below.
How Do I Draw Fibo Extension Crypto Technical Tool on Up-wards Crypto Trend
Please note where these Fibo Expansion levels are plotted - Fibonacci Expansion levels are drawn above the Fibonacci indicator, these are the chart levels where a btc/usd trader will set the takeprofit orders using these Fib Expansion Levels - 61.80 % and 100.00 % Fib Expansion Areas.
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