How to Draw Commodity Trading Fibonacci Expansion on Downwards Commodity Trend

How Do You Draw Commodity Trading Fibonacci Retracement Expansion for Commodity Trading Downtrend?

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.

As a trader you would also have used Commodity Trading Fib Expansion level 100.0%, just where the price reached as illustrated on the Commodity Trading Fibonacci Expansion example shown below. That would have been a good take profit area.

How to Draw Commodity Trading Fibonacci Expansion on Downwards Commodity Trading Trend

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

Explanation of How to Draw Commodities Trading Fibonacci Expansion Levels on Commodities Trading Charts

We use Commodity Trading Fib Expansion levels to estimate where the trend movement will reach. There are 2 commonly used Commodity Trading Fib Expansion areas: 61.80% Commodity Trading Fib Expansion Level and 100% Commodity Fibonacci Expansion Areas, these are used for setting taking profit areas.

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 Fibonacci Expansion Indicator tool is drawn using three 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 Draw Commodity Fibonacci Expansion Indicator on Downward Commodity Trading Trend

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 Fibonacci Expansion Levels - 61.8% Commodity Trading Fib Expansion Level & 100.0% Commodity Fibo Expansion Level.