How Do I Draw Fib Extension Levels on Upwards Trend?
How Do You Draw Fibo Extension Levels on Upward Trend?
We use Fib Extension levels to estimate where the trend movement will get to. There are 2 commonly used Fib Extension levels: 61.80%Fib Extension Level and 100% Fibo Extension Level, these Fib Extension Levels are used for setting forex take profit levels.
On the Fib Extension indicator example below you can see that the Fib Extension indicator tool is plotted along the direction of the trend, since the trend is upward - the Fib Extension indicator is plotted upward.
These Fib Extension levels are displayed as horizontal lines above the Fib Extension indicator, showing forex profit booking zones. In the forex example below if you had used of 100.0% Fibo Extension level you would have made good profit from using this setup.
How Do You Draw Fib Extension Levels on Upwards Trend?
From the above Fib Extension indicator tool example, the upward trend continued & both 61.80% and 100.00% Fib Extension areas were all hit after which the forex price retraced again after getting to the 100.00 % Fib Extension level.
From the Fibonacci Extension indicator tool examples above, after drawing this Fibo Extension tool there are 2 levels that are used to show the forex profit booking zones, these two Fibo Extension levels are drawn as horizontal lines across the forex chart marked as 61.8 percent Forex Fibo Extension Level and 100 % Fibonacci Extension Level.
Explanation of How Do You Draw Fibo Extension Levels on Forex Charts?
We use Fib Extension levels to estimate where the market trend movement will get to. There are 2 important Fib Extension levels: 61.80% and 100% Fibonacci Expansion Levels, these are used for taking profit.
To draw Fibonacci Extension levels on the forex chart we wait til the forex price retracement is complete and price starts heading in original direction of trend. Where the forex price pullback gets-to is used as point 3. Fibonacci Extension Indicator is plotted using three chart points as illustrated on the Fibonacci extension forex example below of how to plot the Fib Extension Indicator.
The Fib Extension example below shows the 3 Chart Points where the Fib Extension forex indicator is plotted, labeled as Point 1, Chart point 2 and Chart point 3.
Point 1 is where forex trend started, Point 2 is where forex trend pulled back & retraced and Chart point 3 is where the forex retracement reached as portrayed on the Fib Extension Indicator example below.
How Do I Draw Fibonacci Extension Levels on Upwards Trend?
Please note where these Fib Extension areas are drawn - Fib Extension zones are plotted above the Fib indicator, these are the chart areas where one will set forex take profit orders using these Fib Extension Levels - 61.80% and 100.00% Fib Extension Levels.
How Do I Draw Fibonacci Extension Levels on Upwards Trend?
