How to Draw Commodity Fibonacci Extension on Up Commodity Trend

How Do You Draw Commodity Trading Fib Extension for Commodity Trading Uptrend?

We use Commodity Trading Fibo Extension Levels to estimate where the trend movement will reach. There are 2 commonly used Commodity Trading Fib Extension areas: 61.8% Commodities Trading Fib Extension Level & 100% Commodity Trading Fib Extension Level, these Commodity Fibo Extension Levels are used for setting take profit areas.

On the Commodity Trading Fib Extension indicator example illustrated and shown below you can see that the Commodity Trading Fib Extension tool is drawn along the direction of the trend, since the trend is up - the Commodity Fibo Extension technical indicator is plotted upwards.

These Commodity Fibo Extension levels are shown as horizontal lines above the Commodity Trading Fib Extension technical indicator, showing the 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 Extension level you would have made a nice profit from the trade set-up.

How to Draw Commodity Fibonacci Extension on Up Commodity Trading Trend

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

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

Explanation of How to Draw Commodity Fib Extension Levels on Commodity Trading Charts

We use Commodity Trading Fib Extension Areas to estimate where the trend movement will reach. There are 2 important Commodity Trading Fib Extension areas: 61.8% & 100% Commodity Trading Fib Extension Areas, these are used for taking profit.

To draw Commodity Trading Fib Extension 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 Extension 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 Extension Technical Indicator.

The Commodity Trading Fib Extension example illustrated and shown below shows 3 Chart Points where the Commodity Trading Fib Extension 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 Extension Trading Indicator examples illustrated & shown below.

How to Draw Commodity Trading Fib Extension Trading Indicator on Upward Commodity Trading Trend

Please note where these Commodity Trading Fib Extension areas are plotted - Commodity Trading Fib Extension levels are drawn above the Fibonacci technical indicator, these are the chart points where one will place takeprofit orders using these Commodity Trading Fib Extension Levels - 61.8% & 100.0% Commodity Trading Fib Extension Areas.