61.8 Fib Expansion Level - How to Trade 61.8 Fib Expansion Level

We useFibonacci expansion levels to estimate where the trend movement will reach. There are 2 important Fibo expansion levels: 61.8% and 100% Fibonacci Expansion Levels, these are used for taking profit.

61.8 Fib Expansion Level - 61.8% Fibonacci Expansion Level

61.8 Fib Expansion Level is the most commonly used forex profit taking level when trading using the Fibo Expansion Technical Indicator.

To draw Fibo Expansion levels on the forex chart we wait until the price retracement is complete & the price starts to move in original direction of the Forex trend. Where the price retracement reaches is used as chart point 3. Fibo Expansion Technical Indicator is plotted using three chart points as displayed on the example below of how to plot the Fibonacci Expansion Technical Indicator Tool.

The Fibonacci expansion example below shows the 3 Chart Points where the Fibonacci expansion technical indicator is drawn, marked as Chart point 1, Chart point 2 & Chart point 3.

Chart point 1 is where the forex trend started, Chart point 2 is where the forex trend pulled back & retraced and Chart point 3 is where the forex retracement reached as displayed on the Fibonacci Expansion Indicator Tool example below.

The First Fibonacci Expansion Level is the 61.8 Fibonacci Expansion Level illustrated Below Used to Set Take Profit Orders

Fibonacci Expansion Level is the 61.8 Fibonacci Expansion Level illustrated Below Used to Set Take Profit Orders

Please note where these Fibonacci Expansion zones are plotted - Fibonacci Expansion zones are plotted above the Fibonacci indicator, these are chart points where one will set take-profit orders using these Fibonacci Expansion Levels - 61.8% Fibo Expansion Levels.