Analyze and Draw Fibonacci Projection Levels

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

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

To draw Fib Projection levels on trading 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. Fibonacci Projection Commodity Indicator is drawn using 3 chart points as shown on the Fibo projection trading commodity example illustrated and shown below of how to draw the Fibo Projection Trading Commodities Indicator Tool.

The Fibonacci projection example shown below shows the 3 Commodities Trading Chart Points where the Fibo projection trading 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 Fibo Projection Trading Commodities Indicator Tool example shown below.

Commodity Trading Draw Fibonacci Projection Levels - How Do I Analyze and Draw Fibonacci Projection Levels?

Please note where these Fibonacci Projection levels are plotted - Fibo Projection zones are drawn above the Fibonacci trading commodity technical indicator, these are the chart points where one will set the commodity take-profit orders using these fib Projection Levels - 61.8% and 100.0% Fibonacci Projection Levels.

Drawing Fib Projection Zones on an Upwards Commodities Trading Trend

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

On the Fib projection trading commodity indicator example illustrated and shown below you can see that the Fibonacci projection technical indicator is drawn along the direction of the trend, since the trend is upwards - the Fibonacci projection areas trading commodity indicator is drawn upwards.

These Fibonacci projection areas are shown as horizontal lines above the Fib Projection trading commodity technical trading indicator, showing commodity profit-taking areas. In the trading commodity examples shown below if you had used of 100.0% Fibonacci projection level you would have made nice profit from the trade setup.

Drawing Fibo Projection Zones Trading Commodities Indicator on an Upward Commodity Trading Trend

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

Drawing Fib Projection Levels on a Downwards Commodities Trading Trend

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

We draw the Fibonacci projection tool from chart point 1 to chart point 2 to chart point Three as shown on the Fibo projection trading commodity example shown below. Remember we always plot this Fibonacci projection tool in the direction of the trend. In the Fibonacci projection 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 projection areas trading commodity indicator above and how Fibonacci Projection levels trading commodity indicator is drawn below. This time you would also have used Fibonacci projection level 100.0%, just where the price reached as illustrated on the Fibonacci projection areas trading commodity example shown below. This would have been a good commodity take profit area.

Drawing Fibo Projection Zones Trading Commodities Indicator on a Downward Commodity Trading Trend

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

Analyze & Draw Fibonacci Projection Levels?