Analyze and Draw Commodity Trading Fib Expansion Levels

How Do I Trade Commodity Trading and Draw Commodity Fibonacci Expansion Levels?

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

To draw Commodity Trading Fib Expansion levels on commodity 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 Expansion Technical Indicator is drawn using 3 chart points as shown on the Fibo expansion commodities trading example illustrated and shown below of how to draw the Commodity Trading Fib Expansion Technical Indicator.

The Fibo expansion example illustrated and shown below shows 3 Commodities Chart Points where the Fibonacci expansion 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 Expansion Indicator example illustrated & shown below.

How Do I Draw Commodity Trading Fib Expansion Levels

Please note where these Commodity Trading Fib Expansion zones are drawn - Commodity Trading Fib Expansion 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 Expansion Levels - 61.8% & 100.0% Commodity Fibo Expansion Areas.

Drawing Commodity Trading Fibonacci Expansion Levels on an Upwards Commodity Trading Trend

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

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

These Fibo expansion levels are displayed as horizontal lines above the Commodity Trading Fibonacci Expansion Indicator, showing commodity profit taking areas. In the commodities trading example illustrated and shown below if as a trader you had used of 100.0% Fib expansion level you would have made a nice profit from the trade setup.

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

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

Drawing Commodities Fibo Expansion Levels on a Downwards Commodities Trading Trend

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

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

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

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

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

Analyze & Draw Commodity Fibonacci Expansion Levels?