How to Draw Commodities Trading Fibonacci Expansion

How Do I Use Commodity Fibo Expansion Levels on Commodity Trading Chart?

We use Commodity Trading Fib Expansion levels to estimate where the trend movement will reach. There are Two important Commodity Trading Fib Expansion areas: 61.8% & 100% Commodity Trading Fib Expansion Areas, these are used for taking profit.

To draw Commodity Trading Fib Expansion levels on the commodity chart we wait until the commodity price retracement is complete & the price starts to move in the original direction of the Commodity Trading trend. Where the commodity price retracement reaches is used as chart point 3. Commodity Trading Fib Expansion Technical Indicator is plotted using 3 chart points as shown on the commodities trading example illustrated and shown below of how to plot the Commodity Trading Fib Expansion Technical Indicator.

The Commodity Trading Fib Expansion example illustrated and shown below shows 3 Chart Points where the Commodity Trading Fib Expansion technical indicator is plotted, marked as Chart point 1, Chart point 2 & Chart point 3.

Chart point 1 is where the commodity trend started, Chart point 2 is where the commodity trend pulled back & retraced and Chart point 3 is where the commodity retracement reached as displayed on the Commodity Trading Fib Expansion Indicator examples illustrated & shown below.

How to Trade With Commodity Trading Fib Expansion - How to Draw Commodity Fibo Expansion Levels on Commodity Trading Charts

Please note where these Commodity Trading Fib Expansion levels are plotted - Commodity Trading Fib Expansion levels are drawn above the Fibo technical indicator, these are chart points where one will place the 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 Commodity Trading Fib Expansion levels to estimate where the trend movement will reach. There are Two important Commodity Trading Fib Expansion areas: 61.80% Commodity Trading Fib Expansion Level & 100% Commodity Trading Fib Expansion Level, these Commodity Trading Fib Expansion Levels are used for taking profit.

On the Commodity Trading Fib Expansion indicator example illustrated and shown below you can see that the Commodity Fibonacci Expansion tool is drawn along the direction of the trend, since the trend is upward - the Commodity Trading Fib Expansion indicator is drawn upward.

These Commodity Fibo Expansion areas are shown as horizontal lines above the Commodity Trading Fib Expansion technical indicator, showing profit taking areas. In the commodities trading example illustrated and shown below if as a trader you had used of 100.0% Commodity Trading Fib Expansion level you would have made a nice profit from the trade set-up.

Drawing Commodity Trading Fib Expansion Trading Indicator on an Upwards Commodity Trend - Commodity Fibo Expansion Trading Tool

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

Drawing Commodities Trading Fibonacci Expansion Areas on a Downwards Commodities Trading Trend

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

We draw the Commodity Trading Fib Expansion tool from chart point 1 to chart point 2 to chart point Three as shown on the commodities trading example illustrated below. Remember we always draw this Commodity Trading Fib Expansion tool in the direction of the market trend. In the Commodity Trading Fib Expansion example illustrated and shown below, can you figure what is direction that we have drawn it? That's right - downwards direction.

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

Drawing Commodity Trading Fib Expansion Trading Indicator on a Downwards Commodity Trend - Commodity Fibo Expansion Trading Tool

From the Commodity Trading Fibonacci Expansion indicator example above, after plotting this Commodity Trading Fib Expansion tool there are 2 levels which are used to show profit taking areas, these 2 Commodity Trading Fib Expansion levels are plotted represented as horizontal lines across the commodity price chart marked as 61.8% Commodity Trading Fib Expansion Level & 100% Commodity Fibo Expansion Level.