How Do I Draw Trading Fib Extension Levels Software?
How Do You Draw Fib Extension Levels Platform?
Traders use Fib extension levels to estimate where the trend movement will get to. There are two commonly used Fib extension levels - 61.8% Fib Extension Level and 100 Percent Fibo Extension Levels, these fibonacci extension levels are used for setting take profit levels.
To draw Fib Extension levels on the chart we wait until the price retracement is complete & the price begins heading in original direction of trend. Where the price pull back gets-to is used as point 3. Fibo Extension Indicator is plotted using three chart points as illustrated on the Fibonacci extension example below of how to plot the Fibo Extension Indicator.
The Fibonacci extension example below shows the 3 Chart Points where the Fibo extension indicator is plotted, marked as Chart point 1, Chart point 2 and Chart point 3.
Chart point 1 is where trend started, Chart point 2 is where trend pulled back and retraced & Chart point 3 is where the retracement reached as portrayed on the Fibo Extension Indicator example below.
How Do You Draw Trading Fib Extension Levels Software?
Please note where these Fibo Extension areas are drawn - Fibo Extension zones are plotted above the Fibo indicator, these are the chart levels where one will set take profit orders using these Fibo Expansion Levels - 61.80% and 100.00% Fib Extension Levels.
Drawing Fibonacci Extension Zones on an Upwards Trend
We use Fibo expansion levels to estimate where the market trend movement will get to. There are two commonly used Fibonacci extension levels: 61.8% Forex Fibo Extension Level & 100% Fibo Extension Level, these Fib Expansion Levels are used for taking profit.
On the Fibonacci extension indicator example below you can see that the Fibonacci extension indicator tool is plotted along the direction of the trend, since the trend is up-wards - the Fibonacci extension levels indicator is drawn upward.
These Fib extension levels are displayed as horizontal lines above Fib Extension indicator, showing profit booking zones. In the example below if you had used of 100.0% Fibonacci extension level you would have made nice profit from the trade set-up.
Drawing Fib Extension Areas Indicator in an Up-ward Trend
From the above Fibonacci extension indicator example, upwards trend continued & both 61.8% & 100.0% Fibonacci extension levels were all hit after which price retraced again after getting to the 100.00% Fibo Extension zone.
Drawing Fibonacci Expansion Levels on a Downwards Trend
Since we use the Fib extension indicator tool to estimate take profit zones, how do we draw Fibonacci Extension in a downwards trend?
We draw the Fibonacci extension indicator tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the Fibonacci extension example below. Remember we always draw this Fibonacci extension tool in direction of the trend. In the Fibonacci extension example below, can you figure what is direction that we have drawn it? That is right - downwards direction.
Try & identify the difference between how we have drawn Fib extension levels indicator above & how Fib Extension levels indicator is drawn below. This time you'd also have used Fibonacci extension level 100.0%, just where the price reached as pictured on the Fibonacci extension levels example below. This would have been a good take profit zone.
Drawing Fib Extension Areas Indicator in a Down-ward Trend
From the Fibonacci extension levels indicator example above, after plotting this Fib extension levels tool there are two levels that are used to show the profit taking areas - these two Fibonacci extension levels are drawn as horizontal lines across the price chart marked as 61.8% Forex Fib Extension Level & 100% Fibo Extension Level.
How Do You Draw Trading Fib Extension Levels Software?
