How Do You Draw Fib Expansion Levels on Upward Forex Trading Trend?
How Do You Draw Fib Expansion Levels on Upward Forex Trading Trend?
We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 commonly used Fibonacci Expansion levels: 61.8%Fibonacci Expansion Level and 100% Fibonacci Expansion Level, these Fibonacci Expansion Levels are used for setting forex take profit levels.
On the Fibonacci Expansion indicator example below you can see that the Fibonacci Expansion technical indicator tool is plotted along the direction of the trend, since the trend is up - the Fibonacci Expansion indicator is drawn upward.
These Fibonacci Expansion levels are displayed as horizontal lines above the Fibonacci Expansion indicator, showing forex profit taking areas. In the forex trading example below if you had used of 100.0% Fibo Expansion level you would have made good profit from the trade set-up.
How Do You Draw Fib Expansion Levels on Upward Forex Trading Trend?
From the above Fibonacci Expansion indicator tool example, the upward trend continued & both 61.80% and 100.00% Fibonacci Expansion levels were all hit after which the forex price retraced again after getting to the 100.00% Fibonacci Expansion level.
From the Fibo Expansion indicator tool examples above, after plotting this Fibonacci Expansion tool there are 2 levels that are used to show the forex profit taking areas, these two Fibonacci Expansion zones are plotted as horizontal lines across the forex chart marked as 61.8% FX Trading Fib Expansion Level & 100% Fibo Expansion Level.
Explanation of How Do You Draw Fibonacci Expansion Levels on Forex Charts?
We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 important Fibonacci Expansion levels: 61.80% & 100% Fibonacci Expansion Levels, these are used for taking profit.
To draw Fibo Expansion levels on the forex chart we wait until the forex price retracement is complete & the price starts to move in original direction of the Forex trend. Where the forex price retracement reaches is used as chart point 3. Fibonacci Expansion Forex Indicator is plotted using three chart points as illustrated on the Fib expansion forex trading example below of how to plot the Fibonacci Expansion Tool.
The Fibonacci Expansion example below shows the 3 Forex Chart Points where the Fibonacci Expansion 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 Expansion Forex Tool example below.
How Do You Draw Fib Expansion Levels on Upward Forex Trading Trend?
Please note where these Fibonacci Expansion zones are plotted - Fibonacci Expansion zones are plotted above the Fibonacci forex indicator, these are the chart points where one will set forex take profit orders using these Fibonacci Expansion Levels - 61.8% & 100.0% Fibo Expansion Levels.
How Do You Draw Fib Expansion Levels on Upward Forex Trading Trend?
