How Do I Analyze Fibonacci Expansion Levels on Forex Charts?
How Do You Trade Fibonacci Expansion Levels on Forex Charts?
To Calculate Fibonacci Expansion levels on forex charts we use the Fibo Expansion Indicator
What are the Fibo Expansion Levels?
- 61.80% Fibonacci Expansion Level
- 100% Fibonacci Expansion Level
We use Fibonacci expansion levels to estimate where the price movement will reach. There are 2 important forex trading fibonacci expansion levels: 61.80% & 100% Fib Expansion levels, these level are used for taking profit.
To draw Fibonacci expansion levels indicatorwe use 3 chart points.
To draw Fibonacci expansion levels we wait until the forex price retracement is complete & the forex instrument starts to move in the original direction of the Forex trend. Where the forex price retracement reaches is used as chart point 3.
The forex trading example below shows the 3 Forex Chart Points where the Fibonacci expansion indicator is drawn, marked as chart points 1, 2 and 3. Forex Chart point 1 is where the price trend started, Forex Chart point 2 is where the price trend retraced and chart point 3 is where the price retracement reached as illustrated on the forex trading example below.
How Do I Interpret Fibonacci Expansion Levels on Forex Charts? - Fibonacci Expansion Indicator Guide
The two Fibo expansion levels 61.8% and 100% Fibonacci Expansion levels were then drawn above the Fibonacci Expansion Forex Indicator as shown on the forex trading example above.
How Do I Interpret Fibonacci Expansion Levels on Forex Charts?
