Commodity Trading Fibo Extension Technical Indicator Levels Defined

To Calculate Commodity Trading Fib Extension levels on commodity charts we use the commodity trading Commodity Trading Fib Extension Indicator

What are the Commodity Trading Fib Extension Levels?

• 61.8% Commodity Trading Fib Extension Level
• 100% Commodity Trading Fib Extension Level

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

To draw Fibo expansion we use Three chart points.

To draw Fibonacci extension levels we wait until the commodity price retracement is complete and commodity price starts to move in the original direction of the Commodity Trading trend. Where the retracement reaches is used as point 3.

The example displayed below shows the 3 Chart Points where the Fibonacci extension 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 shown on the commodities trading example shown below.

How Do You Calculate Commodity Trading Fib Extension Levels on Commodity Trading Charts?

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