Commodity Trading Fibonacci Expansion Indicator Explained

To Calculate Commodity Trading Fibonacci Expansion levels on commodity charts we use the commodity trading Commodity Fibo Expansion Indicator

What are the Commodity Trading Fibo Expansion Levels?

• 61.8% Commodity Trading Fibo Expansion Level
• 100% Commodity Trading Fibo Expansion Level

We use Fibo expansion areas to estimate where the price movement will reach. There are 2 important fibonacci expansion levels: 61.8% and 100% Commodity Trading Fib Expansion levels, these levels are used by traders for taking profit.

To draw Fibo expansion we use 3 chart points.

To draw Fibonacci expansion levels 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 retracement reaches is used as point 3.

The example shown 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 price commodity trend started, Chart point 2 is where the price commodity trend retraced and chart point 3 is where the price retracement reached as illustrated on the commodities trading example shown below.

How Do You Calculate Commodity Fibo Expansion Levels on Commodity Trading Charts?

The two Fib expansion levels 61.8% & 100% Commodity Trading Fib Expansion levels were then drawn above the Commodity Trading Fib Expansion Technical Indicator as shown on the commodities trading example above.