Fibonacci Extension MT4 Indicator - Fibonacci Extension Forex Technical Analysis
How to Use Fibonacci Extension in Forex Trading - Take Profit Level Forex Calculator
We use Fibonacci Extension levels to estimate where the trend movement will reach. There are 2 important Fibonacci Extension levels: 61.80% and 100% Fibo Extension Levels, these are used for taking profit.
To draw Fibonacci Extension levels in MetaTrader 4 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 Extension MT4 Indicator is plotted using three chart points as displayed on the example below of how to plot the Fibonacci Extension Indicator MT4 Tool.
The Fibo Extension MT4 Indicator example below shows the 3 Chart Points where the Fibo Extension MT4 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 Fibo Extension MT4 Indicator Tool example below.
Fibonacci Extension Forex MT4 Indicator - Fibonacci Extensions
Fibonacci Extension Forex MT4 Indicator - Fibonacci Extensions
Please note where these Fibonacci Extension areas are drawn - Fibonacci Extension zones are plotted above the MT4 Fibonacci indicator, these are chart points where one will set take-profit orders using these Fibonacci Extension Levels - 61.80% and 100.00% Fibonacci Extension Levels.
Upward Forex Trend - Fib Extension Forex MT4 Indicator
We use Fibonacci Extension levels to estimate where the trend movement will reach. There are 2 important Fibonacci Extension levels: 61.80% FX Fibonacci Extension Level & 100% Fibo Extension Level, these Fib Extension Levels are used for taking profit.
On the Fibo Extension MT4 indicator example below you can see that the Fibo Extension MT4 technical indicator tool is plotted along the direction of the trend, since the trend is upwards - MT4 Fibonacci Extension technical indicator is drawn upwards.
These Fibonacci Extension levels are displayed as horizontal lines above the Fibo Extension MT4 indicator, showing profit taking areas. In the forex trading example below if you had used of 100.0% Fibonacci Extension level the you would have made good profit from this setup.
Upwards Forex Trend - Fib Extension Forex MT4 Indicator - Fibo Extension Calculation
Fibonacci Extension Forex MT4 Technical Indicator - Fibo Extension Calculator
From the above Fibo Extension MT4 indicator example, upward trend continued and both 61.8% & 100.0% Fibonacci Extension zones were all hit after which price retraced again after getting to the 100.00% Fibonacci Extension level.
Downwards Forex Trend - Fib Extension Forex MT4 Indicator
Since we use the Fibo Extension MT4 tool to estimate take profit levels, how do we draw MT4 Fibonacci Extension in a downward Forex trend?
We draw the Fibo Extension MetaTrader 4 indicator tool from chart point 1 to chart point 2 to chart point 3 as shown on the forex trading example below. Remember we always draw this Fibonacci Extension MetaTrader 4 tool in direction of the trend. In the Fibonacci Extension example below, can you figure what is direction that we have drawn it? That is right - downwards direction.
Try & identify the difference between how we have drawn Fibo Extension indicator above and how Fibonacci Extension technical indicator is drawn below. This time you would also have used Fibo Extension level 100.00%, just where the price reached as shown on the forex trading example below. That would have been a good take profit level.
Downwards Forex Trend - Fib Extension Forex MT4 Indicator
Fib Extension Forex Trading MetaTrader 4 Indicator - Fib Extension Calculator
From the Fibo Extension MT4 indicator examples above, after plotting this MetaTrader 4 Fibo Extension tool there are 2 levels that are used to show the profit taking areas, these 2 Fibonacci Extension levels are plotted as horizontal lines across the forex price chart marked as 61.8% Forex Trading Fib Extension Level & 100% Fibo Extension Level.
