How Do You Analyze Fibonacci Retracement vs Fibonacci Expansion?

How Do You Trade Fibonacci Retracement vs Fibonacci Expansion?

Fibo retracement is drawn between 2 chart points but Fibo expansion is drawn using Three chart points.

Fibonacci Retracement indicator example below - where the forex trend is moving downwards between Forex Chart point 1 and Forex Chart point 2 - then after Forex Chart point 2 the forex price retraces then it continues moving up in the original upwards trend. Note that this Fibonacci Retracement indicator is drawn from Forex Chart point 1 to Chart point 2 in direction of the trend.

How Do I Analyze Fibonacci Retracement vs Fibonacci Expansion?

Forex Trading Fib Expansion Levels

Fibo retracement indicator is drawn between 2 chart points but Fibo expansion is drawn using 3 chart points.

To draw these Fibonacci Expansion levels forex traders will 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 - this point is used as chart point 3 for Fibonacci expansion forex trading indicator.

The Fibonacci Expansion indicator example below shows the 3 chart points where the Fibonacci Expansion indicator is drawn, marked as chart points 1, 2 and 3. Forex Chart point 1 is where the forex trend started, Forex Chart point 2 is where the price pulled back and retraced and Chart point 3 is where the price retracement reached as illustrated on the Fibonacci Expansion indicator example below.

How Do I Interpret Fibonacci Retracement vs Fibonacci Expansion?

Please note where these Fibonacci expansion levels are drawn - Fibonacci Expansion zones are plotted above the Fib Expansion indicator - these are the points where a trader will set forex take profit orders.

How Do I Analyze Fibonacci Retracement vs Fibonacci Expansion?