Analyze and Draw Commodity Trading Fib Extension Levels

How Do I Trade Commodity Trading and Draw Commodity Trading Fib Extension Levels?

Traders use Fibonacci extension levels to estimate where the trend movement will reach. There are two commonly used Fibonacci extension levels - 61.8% Commodity Trading Fib Extension Level and 100% Commodity Trading Fib Extension Levels, these fibonacci extension levels are used for setting commodity take profit areas.

To draw Commodity Trading Fib Extension levels on the commodities chart we wait until the commodity price retracement is complete and commodity price starts to move in original direction of the trend. Where the commodity trading price retracement reaches is used as chart point 3. Commodity Trading Fib Extension Indicator is drawn using 3 chart points as shown on the Fibo extension commodity examples shown below of how to draw the Commodities Trading Fib Extension Technical Indicator.

The Fibo extension example illustrated and shown below shows 3 Commodities Trading Chart Points where the Fibonacci extension commodity technical trading indicator is drawn, marked as Commodities Trading Chart point 1, Commodities Trading Chart point 2 and Commodities Trading Chart point 3.

Commodities Chart point 1 is where the commodity trend started, Commodities Trading Chart point 2 is where the commodity trend pulled back and retraced & Commodities Chart point 3 is where the commodity retracement reached as displayed on the Commodity Fibo Extension Technical Indicator examples illustrated & shown below.

How Do I Draw Commodity Fibo Extension Zones

Please note where these Commodity Trading Fib Extension levels are plotted - Commodity Trading Fib Extension zones are drawn above the Fibo commodity technical indicator, these are the chart points where one will set the commodity take-profit orders using these Commodity Trading Fib Extension Levels - 61.8% & 100.0% Commodity Trading Fib Extension Levels.

Drawing Commodity Fib Extension Zones on an Upward Commodity Trading Trend

We use Fib expansion areas to estimate where the trend movement will reach. There are two commonly used Fibonacci extension levels: 61.8% Commodities Trading Fib Extension Level & 100% Commodity Trading Fib Extension Level, these Commodity Trading Fib Extension Areas are used for taking profit.

On the Fibonacci extension indicator example illustrated and shown below you can see that the Fibonacci extension technical indicator tool is drawn along the direction of the trend, since the trend is upward - the Fibonacci extension levels indicator is drawn upwards.

These Fibo extension levels are displayed as horizontal lines above the Commodity Trading Fib Extension indicator, showing commodity profit taking areas. In the commodity examples shown below if you had used of 100.0% Fibonacci extension level you would have made nice profit from the trade setup.

Drawing Commodity Fibo Extension Levels Technical Indicator on an Upwards Commodity Trading Trend

From the above Fibonacci extension indicator example, the upward trend continued and both 61.8% & 100.0% Fibonacci extension levels were all hit after which commodity trading price retraced again after getting to the 100.00% Commodity Fibonacci Extension level.

Drawing Commodities Fib Extension Areas on a Downward Commodities Trading Trend

Since we use the Fibonacci extension indicator tool to estimate commodity take profit levels, how do we draw Commodity Trading Fib Extension in a downward Commodity Trading trend?

We draw the Fibonacci extension tool from chart point 1 to chart point 2 to chart point 3 as shown on the Fibonacci extension commodity example shown below. Remember we always plot this Fibonacci extension tool in the direction of the trend. In the Fibonacci extension example shown below, can you figure what is the direction that we have plotted it? That's right - downward direction.

Try & spot difference between how we have drawn Fibonacci extension levels indicator above and how Commodity Trading Fib Extension levels indicator is drawn below. This time you would also have used Fibonacci extension level 100.0%, just where the price reached as illustrated on the Fibonacci extension levels commodity example shown below. This would have been a good commodity take profit area.

Drawing Commodity Fibo Extension Levels Technical Indicator on a Downward Commodity Trading Trend

From the Fibonacci extension levels indicator example above, after drawing this Fibonacci extension levels commodity tool there are 2 levels that are used to show the commodity profit taking areas - these two Fibonacci extension levels are drawn as horizontal lines across the commodity trading price chart marked as 61.80% Commodity Trading Fib Extension Level & 100% Commodity Trading Fib Extension Level.

Analyze & Draw Commodity Trading Fib Extension Levels?