How to Draw Fibonacci Projection on Up Commodity Trading Trend

Commodity Draw Fibonacci Projection for Commodity Trading Uptrend

We use Fib Projection levels to estimate where the trend movement will reach. There are 2 commonly used Fibonacci Projection levels: 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level, these Fibonacci Projection Levels are used for setting take profit areas.

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

These Fibo Projection levels are shown as horizontal lines above Fib Projection 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% Fib Projection level you would have made a nice profit from the trade setup.

How to Draw Commodity Trading Fibonacci Projection on Upwards Commodity Trading Trend

From the above Fibonacci Projection technical indicator tool example, the upward trend continued & both 61.80% & 100.00% Fibonacci Projection levels were all hit after which the commodity price retraced again after getting to the 100.00% Fibo Projection level.

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

Explanation of How to Draw Fibonacci Projection Levels on Commodity Trading Charts

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

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

The Fibo Projection example illustrated and shown below shows Three Chart Points where the Fibo Projection 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 & Chart point 3 is where the commodity retracement reached as displayed on the Fibo Projection Indicator examples illustrated and shown below.

How to Draw Fib Projection Technical Indicator Tool on Upwards Commodity Trading Trend

Please note where these Fibonacci Projection levels are plotted - Fib Projection zones are drawn above the Fibo indicator, these are the chart points where one will place takeprofit orders using these Fib Projection Levels - 61.8% & 100.0% Fib Projection Levels.