Crude Oil Fib Extension Strategy
We use Oil Fib Extension Zones to estimate where the oil trend movement will reach. There are 2 important Oil Trading Fib Extension areas: 61.8% and 100% Oil Fibonacci Extension Levels, these are used for profit taking.
To draw Oil Fib Extension levels on the MT4 crude oil chart we wait until the crude oil price retracement is complete and the crude oil price starts to move in original direction of the Oil Trading trend. Where the crude oil price retracement reaches is used as chart point 3. Oil Fibonacci Extension MetaTrader 4 Technical Indicator is drawn using 3 chart points as shown and illustrated on the crude oil trading example explained below of how to draw the Oil Trading Fibo Extension Technical Indicator MetaTrader 4 Tool.
The Oil Trading Fibo Extension MetaTrader 4 Oil Trading Indicator example explained below shows the 3 Chart Points where the Oil Trading Fibo Extension MetaTrader 4 indicator is plotted, marked as Chart point 1, Chart point 2 & Chart point 3.
Chart point 1 is where the oil trend started, Chart point 2 is where the oil trend pulled back and retraced & Chart point 3 is where the oil retracement reached as displayed on the Oil Trading Fibo Extension MetaTrader 4 Crude Oil Trading Indicator Tool example explained below.
Crude Oil Fibonacci Extension Strategy - Crude Oil Trading Fibonacci Strategy
Oil Fibonacci Extension Strategy - Oil Trading Fib Strategy - Oil Fib Extension Strategy
Please note where these Oil Fib Extension levels are plotted - Oil Fib Extension zones are plotted above the MetaTrader 4 Fibonacci indicator, these are the chart points where a trader will place the take-profit orders using these Oil Trading Fibo Extension Levels - 61.8% and 100.0% Oil Fibonacci Extension Levels.
Upward Oil Trend - Crude Oil Trading Fib Extension Strategy - Oil Trading Fib Strategy - Oil Fib Extension Strategy
We use Oil Fib Extension Zones to estimate where the oil trend movement will reach. There are 2 important Oil Trading Fib Extension areas: 61.8% Oil Trading Fibo Extension Level and 100% Oil Fib Extension Level, these Oil Fibonacci Extension Levels are used for profit taking.
On the Oil Trading Fibo Extension MetaTrader 4 indicator example explained below you can see that the Oil Trading Fibo Extension MetaTrader 4 technical indicator is drawn along the direction of the oil trend, since the oil trend is upward - the MetaTrader 4 Oil Trading Fib Extension technical indicator is plotted upwards.
These Oil Trading Fibo Extension zones are displayed as horizontal lines above the Oil Trading Fibo Extension MetaTrader 4 technical indicator, showing profit taking areas. In the crude oil trading example explained below if you had used of 100.0% Oil Trading Fibo Extension level you would have made good profit from the trade set up.
Crude Oil Fibonacci Extension Strategy - Crude Oil Trading Fibonacci Strategy
Oil Trading Fib Extension Strategy - Oil Trading Fib Strategy
From the above Oil Trading Fibo Extension MetaTrader 4 indicator examples, the upwards oil trend continued and both 61.8% & 100.00% Oil Trading Fib Extension zones were all hit after which crude oil price retraced again after getting to the 100.00% Oil Trading Fibonacci Extension level.
Oil Trading Fib Extension Strategy
Since we use the Oil Trading Fibo Extension MetaTrader 4 indicator tool to estimate take profit levels, how do we draw MetaTrader 4 Oil Fibonacci Extension in a downward Oil Trading trend?
We draw the Oil Trading Fibo Extension MetaTrader 4 oil tool from chart point 1 to chart point 2 to chart point 3 as shown on the crude oil trading example explained below. Remember we always plot this Oil Trading Fibo Extension MetaTrader 4 indicator tool in the direction of the oil trend. In the Oil Fib Extension example explained below, can you figure what direction we have plotted it? That's right - downward direction.
Try & spot the difference between how we have drawn Oil Trading Fib Extension indicator above and how Oil Fib Extension technical indicator is plotted below. This time you would also have used Oil Fib Extension level 100.0%, just where the crude oil price reached as illustrated on the crude oil trading example explained below. That would have been a good level for taking profit.
Oil Trading Fib Extension Strategy - Oil Trading Fib Strategy
Oil Trading Fib Extension Strategy - Oil Trading Fib Strategy
From the Oil Trading Fibo Extension MetaTrader 4 indicator example above, after drawing this MT4 Oil Trading Fibo Extension tool there are 2 levels that are used to show the profit-taking areas, these two Oil Trading Fibo Extension levels are plotted represented as horizontal lines across the crude oil price chart marked as 61.80% Oil Trading Fibo Extension Level and 100% Oil Fib Extension Level.
