How to Draw Fibonacci Projection on Up Bitcoin Trend
Trading Cryptocurrency Draw Fibonacci Projection for Bitcoin Uptrend
We use Fibo Projection levels to estimate where the bitcoin trend movement will reach. There are 2 oftenly used Fibonacci Projection levels: 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level, these Fibonacci Projection Levels are used for setting take profit areas.
On the Fibonacci Projection technical indicator example illustrated below you can see that the Fibonacci Projection technical indicator is plotted along the direction of the bitcoin trend, since the bitcoin trend is up - the Fibonacci Projection technical indicator is drawn upwards.
These Fibonacci Projection levels are displayed as horizontal lines above the Fibo Projection technical indicator, showing the profit-taking areas. In the cryptocurrency trading example illustrated below if you had used of 100.0% Fibonacci Projection level you would have made nice profit from the trade set-up.
How to Draw Crypto Trading Fibonacci Projection on Upwards Crypto Trend
From the above Fibonacci Projection technical indicator tool example, the upward bitcoin trend continued & both 61.80% & 100.0% Fibonacci Projection levels were all hit after which the bitcoin price retraced again after getting to the 100.0% Fibo Projection level.
From the Fibonacci Projection technical indicator tool example above, after plotting this Fibonacci Projection tool there are two levels that are used to show the profit taking areas, these two Fibonacci Projection areas are drawn as horizontal lines across the cryptocurrency chart marked as 61.80%Fibo Projection Level & 100% Fibo Projection Level.
Explanation of How to Draw Fib Projection Zones on Crypto Charts
We use Fibo Projection levels to estimate where the bitcoin trend movement will reach. There are 2 important Fib Projection levels: 61.8% & 100% Fib Projection Areas, these are used for taking profit.
To draw Fib Projection levels on the cryptocurrency chart we wait until the bitcoin price retracement is complete & the bitcoin price starts to move in the original direction of the Bitcoin trend. Where the bitcoin price retracement reaches is used as chart point 3. Fib Projection Technical Indicator is plotted using 3 chart points as shown on the cryptocurrency trading example illustrated below of how to draw the Fibonacci Projection Indicator Tool.
The Fibonacci Projection example illustrated below shows the 3 Chart Points where the Fibonacci Projection indicator is plotted, marked as Chart point 1, Chart point 2 & Chart point 3.
Chart point 1 is where the bitcoin trend started, Chart point 2 is where the bitcoin trend pulled back & retraced & Chart point 3 is where the cryptocurrency retracement reached as shown on the Fibonacci Projection Technical Indicator Tool example illustrated below.
How to Draw Fib Projection Crypto Technical Indicator Tool on Upwards Crypto Trend
Please note where these Fibonacci Projection areas are drawn - Fib Projection levels are plotted above the Fibo indicator, these are the chart points where a trader will place the takeprofit orders using these Fib Projection Levels - 61.80% & 100.00% Fib Projection Zones.
