What's Difference between Commodity Trading Fib Retracement & Commodity Trading Fibonacci Expansion?

Commodity Trading Fibo Retracement Areas

Fibonacci retracement is drawn between 2 chart points but Fib expansion is plotted using 3 chart points.

Commodity Trading Fibonacci Retracement example shown below where the commodity trend is moving downwards between Chart point 1 & Chart point 2, then after Chart point 2 the commodity price retraces then it continues moving up in the original upwards trend. Note that this Commodity Trading Fibonacci Retracement indicator is drawn from Chart point 1 to Chart point 2 in the direction of the trend.

Commodity Trading Fib Retracement Levels - How to Draw Commodity Fibo Retracement Levels

Commodity Trading Fib Expansion Levels

Fibonacci retracement is drawn between 2 chart points but Fib expansion is plotted using 3 chart points.

To draw these Commodity Trading Fib Expansion levels we wait until commodity price retracement is complete and the price starts to move in original direction of the Commodity Trading trend. Where the retracement reaches is used as chart point 3 for Fibonacci expansion.

The Commodity Trading Fib Expansion example illustrated and shown below shows 3 chart Points where the Commodity Trading Fibonacci Expansion indicator is drawn, marked as chart point 1, 2 and 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 retracement reached as displayed on the Commodity Trading Fibonacci Expansion example shown below.

Commodity Trading Fibonacci Expansion Levels - How to Draw Commodity Trading Fib Expansion Levels

Please note where these Commodity Trading Fib Expansion zones are drawn - Commodity Trading Fib Expansion zones are drawn above the Commodity Trading Fibonacci Expansion indicator, these are the points where a trader will set the takeprofit orders.