What is the Difference between BTCUSD Crypto Fibonacci Retracement & Crypto Fibonacci Expansion?
BTCUSD Trading Fib Retracement Areas
Fib retracement is drawn between 2 chart points but Fib expansion is plotted using Three chart points.
Fibonacci Retracement example illustrated below where the bitcoin trend is heading downwards between Chart point 1 & Chart point 2, then after the Chart point 2 the bitcoin price retraces then it continues moving up in the original upward cryptocurrency trend. Note that this Fibonacci Retracement indicator is drawn from Chart point 1 to Chart point 2 in direction of the cryptocurrency trend.
Fibo Retracement Levels - How to Draw Fibo Retracement Zones
BTCUSD Trading Fib Expansion Levels
Fib retracement is drawn between 2 chart points but Fib expansion is plotted using Three chart points.
To draw these Fibonacci Expansion levels 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 retracement reaches is used as chart point 3 for Fibonacci expansion.
The Fibonacci Expansion example illustrated below shows the 3 chart Points where the Fibonacci Expansion indicator is drawn, marked as chart point 1, 2 and 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 retracement reached as shown on Fibonacci Expansion example illustrated below.
Fibo Expansion Levels - How to Draw Fibo Expansion Areas
Please note where these Fib Expansion levels are plotted - Fibo Expansion levels are plotted above the Fib Expansion indicator, these are the points where a trader will place the takeprofit orders.
