How Do You Interpret Commodity Trading Fibo Expansion Levels in Commodity Trading?
How Do I Trade Commodity Trading Fibo Expansion Levels in Commodity Trading?
Fibonacci expansion commodity technical technical indicator is drawn using 3 chart points.
To draw Commodity Trading Fibonacci Expansion levels on commodity charts we wait until the commodity price retracement is complete and commodity price starts to move in original direction of the Commodity Trading trend. Where the commodity price retracement reaches is used as chart point 3.
The Fibonacci expansion commodities trading example shown below shows the 3 Commodity Chart Points where the Fibonacci expansion commodity technical trading indicator is drawn, marked as Commodity Trade Chart point 1, 2 & 3. Commodity Chart point 1 is where the commodity trend started, Commodity Trading Chart point 2 is where the commodity trend pulled back and retraced & Commodity Chart point 3 is where the price retracement reached as illustrated on the Commodity Trading Fibonacci Expansion Tool commodities trading example shown below.
Commodity Trading Fib Expansion Strategy using Commodity Trading Fib Expansion Levels
Please note where these Commodity Trading Fib Expansion zones are drawn on commodity chart - Commodity Trading Fib Expansion zones are drawn above the Fibo Commodity Technical Indicator, these are points where the trader will set the commodity take-profit orders using these Commodity Trading Fib Expansion Levels - 61.8% & 100% Commodity Fibo Expansion Areas.
Drawing Commodity Trading Fibonacci Expansion Levels on an Upwards Commodity Trading Trend
We use Fib expansion levels to estimate where the trend movement will reach. There are Two important Fib expansion levels: 61.8% & 100% Commodity Trading Fibonacci Expansion Levels, these Commodity Trading Fibonacci Expansion Levels are used for taking commodity profit.
On the Fibonacci expansion commodities trading example shown below you can see that the Fibonacci expansion technical indicator is drawn along the direction of the trend, since the trend is upward - the Fibonacci expansion indicator is drawn upwards.
These Fibo expansion levels are displayed as horizontal lines above the Commodity Trading Fib Expansion technical indicator, showing the profit taking areas. In the commodities trading example shown below if you had used of 100% Fibonacci expansion level you would have made nice commodity profit from the commodity trade setup.
Commodity Trading Fib Expansion Strategies in Commodity Trading
From the above Fibonacci expansion commodity trading examples, the upward trend continued & both 61.80% & 100.00% Fibonacci expansion levels were all hit after which commodity trading price retraced again after getting to the 100.0 % Commodity Trading Fibo Expansion level.
Drawing Commodities Trading Fibonacci Expansion Levels on a Downward Commodities Trading Trend
Since we use this Fibo expansion commodity trading tool to estimate commodity take profit levels, how do we draw it in a downward Commodity Trading trend?
We draw the Fibonacci expansion indicator from chart point 1 to 2 to 3 as shown below. Remember we always plot this Fibonacci expansion commodity trading tool in the direction of the trend. In the Fibonacci expansion commodities trading example shown below, can you figure what direction we have drawn it? That is right - downwards direction.
Try & spot difference between how we have drawn commodity trading Fibonacci expansion levels above and how commodity trading Commodity Trading Fibonacci Expansion Indicator is drawn below. This time you would also have used Fibonacci expansion level 100%, just where the price reached as illustrated on the commodities trading example shown below. That would have been a nice commodity take profit area.
Commodity Trading Fib Expansion Strategies in Commodity Trading
From the Fibonacci expansion commodities trading example above, after drawing this Fibonacci expansion tool there are 2 levels that are used to show the commodity profit taking areas, these two Fibonacci expansion levels on the commodity indicator are drawn as horizontal lines across the commodity trading price chart.
How Do I Trade Commodity Trading Fibo Expansion Levels in Commodity Trading
