How Do You Draw Forex Trading Fib Extension Levels Software?
How Do You Draw FX Trading Fib Extension Levels Platform?
Forex traders use Fibonacci extension levels to estimate where the trend movement will reach. There are two commonly used Fibonacci extension levels - 61.8% Fibonacci Extension Level and 100% Fibonacci Extension Levels, these fibonacci extension levels are used for setting forex take profit levels.
To draw Fibo Extension levels on the forex chart we wait until the forex price retracement is complete & the price starts to move in original direction of the trend. Where the forex price retracement reaches is used as chart point 3. Fibo Extension Indicator is plotted using three chart points as illustrated on the Fibonacci extension forex example below of how to plot the Fibonacci Extension Technical Indicator.
The Fibonacci extension example below shows the 3 Forex Chart Points where the Fibonacci extension forex technical indicator is drawn, marked as Forex Chart point 1, Forex Chart point 2 and Forex Chart point 3.
Forex Chart point 1 is where the forex trend started, Forex Chart point 2 is where the forex trend pulled back & retraced & Forex Chart point 3 is where the forex retracement reached as displayed on the Fibonacci Extension Indicator example below.
How Do You Draw Forex Trading Fib Extension Levels Software?
Please note where these Fibo Extension areas are drawn - Fibo Extension zones are plotted above the Fibo forex indicator, these are the chart points where one will set forex take profit orders using these Fibonacci Extension Levels - 61.80% and 100.00% Fibonacci Extension Levels.
Drawing Fibonacci Extension Zones on an Upwards Forex 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 Fibonacci Extension Level & 100% Fibo Extension Level, these Fib Extension Levels are used for taking profit.
On the Fibonacci extension indicator example below you can see that the Fibonacci extension technical indicator tool is plotted along the direction of the trend, since the trend is upwards - the Fibonacci extension levels indicator is drawn upward.
These Fib extension levels are displayed as horizontal lines above Fibonacci Extension indicator, showing forex profit taking areas. In the forex example below if you had used of 100.0% Fibonacci extension level you would have made nice profit from the trade set-up.
Drawing Fibonacci Extension Areas Indicator on an Upward Forex Trend
From the above Fibonacci extension indicator example, upward trend continued and both 61.8% & 100.0% Fibonacci extension levels were all hit after which forex price retraced again after getting to the 100.00% Fibonacci Extension level.
Drawing Fibonacci Extension Levels on a Downwards Forex Trend
Since we use the Fibonacci extension indicator tool to estimate forex take profit levels, how do we draw Fibonacci Extension in a downward Forex 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 forex 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 and identify the difference between how we have drawn Fibonacci extension levels indicator above and how Fibonacci Extension levels indicator is drawn below. This time you would also have used Fibonacci extension level 100.0%, just where the price reached as shown on the Fibonacci extension levels forex example below. This would have been a good forex take profit area.
Drawing Fibonacci Extension Areas Indicator on a Downward Forex Trend
From the Fibonacci extension levels indicator example above, after plotting this Fibonacci extension levels forex tool there are 2 levels that are used to show the forex profit taking areas - these two Fibonacci extension levels are drawn as horizontal lines across the forex price chart marked as 61.8% Forex Trading Fib Extension Level & 100% Fibo Extension Level.
How Do You Draw Forex Trading Fib Extension Levels Software?
