How Do I Analyze Fib Retracement Levels & Fibo Extension Levels in Forex Trading?
How Do You Trade Fib Retracement Levels and Fib Extension Levels?
Fib Retracement Levels in Forex Trading
Fib Expansion Levels in Forex Trading
Introduction to Fibonacci Retracement Levels Trading
Fibo retracement levels indicator is drawn between 2 chart points but Fib extension levels indicator is drawn using Three chart points.
Fib Retracement Areas on charts example below where the trend is moving down between Chart point 1 and Chart point 2, then after Point 2 the price retraces then it continues moving upwards in the original upward trend. Note that this Fibonacci Retracement Levels indicator is plotted from Chart point 1 to Chart point 2 in direction of the trend.
FX Fibo Retracement Levels
Introduction to Fibonacci Extension Levels in Forex Trading
Fibo retracement levels indicator is drawn between 2 chart points but Fib extension levels indicator is drawn using Three chart points.
To draw these Fibo Extension zones we wait until the price retracement is complete and price starts heading in original direction of trend. Where the price retracement reaches is used as chart point 3 for Fibonacci extension levels indicator.
The Fib Extension example below shows the 3 chart areas where the Fib Extension indicator tool is plotted, labeled as chart point 1, 2 & 3. Point 1 is where trend started, Point 2 is where trend pulled back & retraced and Chart point 3 is where the price retracement reached as illustrated on the Fib Extension example below.
Fibonacci Extension Levels
Please note where these Fib Extension areas are drawn on the chart - Fibo Extension zones are plotted above the Fibo Extension indicator, these are the points where a trader will set the take-profit orders.
How Do I Interpret Fib Retracement Levels and Fib Extension Levels?
