How to Draw Fib Expansion on Upward Forex Trend - Fibonacci Expansion Indicator on Upwards Forex Trend
Drawing Fibonacci Expansion Levels on an Upward Forex Trend - Draw Fibonacci Expansion for Forex Uptrend
We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 commonly used Fibonacci Expansion levels: 61.8% Forex Trading Fib Expansion Level and 100% Fibonacci Expansion Level, these Fibonacci Expansion Levels are used for setting 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 Fibo Expansion levels are displayed as horizontal lines above the Fib Expansion indicator, showing 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 to Draw Fib Expansion on Upward Forex Trend - How to Draw Fibonacci Expansion on Up Forex 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 profit taking areas, these two Fibonacci Expansion levels are plotted as horizontal lines across the forex chart marked as 61.8% Forex Trading Fib Expansion Level & 100% Fibo Expansion Level.
Explanation of How to 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 price retracement is complete & the price starts to move in original direction of the Forex trend. Where the price retracement reaches is used as chart point 3. Fibo Expansion Technical Indicator is plotted using three chart points as displayed on the example below of how to plot the Fibonacci Expansion Technical Indicator Tool.
The Fibonacci Expansion example below shows the 3 Chart Points where the Fibonacci Expansion technical indicator is drawn, marked as Chart point 1, Chart point 2 & Chart point 3.
Chart point 1 is where the forex trend started, Chart point 2 is where the forex trend pulled back & retraced and Chart point 3 is where the forex retracement reached as displayed on the Fibonacci Expansion Indicator Tool example below.
How to Draw Fibonacci Expansion Indicator on Upwards Forex Trend
Please note where these Fib Expansion zones are plotted - Fibo Expansion zones are plotted above the Fibonacci technical indicator, these are the chart points where a trader will place take profit orders using these Fibo Expansion Levels - 61.8% & 100.00% Fibo Expansion Levels.
