Analyze the Difference between Oil Fibonacci Retracement Levels and Oil Fibo Extension Levels in Oil Trading

Crude Oil Trade the Difference between Oil Fibonacci Retracement Levels and Oil Fibo Extension Levels in Oil Trading

Oil Trading Fibo Retracement Levels in Oil Trading

Fibonacci retracement is drawn between 2 oil chart points but Fibonacci extension is drawn using 3 oil chart points.

Oil Trading Fibonacci Retracement Level crude oil trading example explained below where the oil trend is moving down between Oil Trading Chart point 1 and Oil Trading Chart point 2, then after Oil Trading Chart point 2 the crude oil price retraces then it continues moving upward in the original upwards crude oil trend. Note that this Oil Fibo Retracement Levels oil indicator is drawn from Oil Trading Chart point 1 to Oil Trading Chart point 2 in the direction of the crude oil trend.

Oil Fib Retracement Levels - How Do You Draw Oil Trading Fib Retracement Zones

Oil Fibo Extension Levels in Oil Trading

Fibonacci retracement is drawn between 2 oil chart points but Fibonacci extension is drawn using 3 oil chart points.

To draw these Oil Trading Fib Extension zones we wait until the crude oil price retracement is complete & the crude oil price starts to move in the original direction of the Oil Trading trend. Where the crude oil price retracement reaches is used as oil chart point 3 for fibonacci extension in crude oil trading.

The Oil Trading Fib Extension crude oil trading example explained below shows the 3 oil chart Points where the Oil Trading Fib Extension indicator is drawn, marked as oil chart point 1, 2 and 3. Oil Trading Chart point 1 is where the oil trend started, Oil Trading Chart point 2 is where the oil trend pulled back and retraced & Oil Trading Chart point 3 is where the crude oil price retracement reached as illustrated on the Oil Trading Fib Extension crude oil trading example explained below.

Oil Fibonacci Extension Levels - How Do You Draw Oil Trading Fib Extension Levels

Please note where these Oil Trading Fib Extension levels are plotted - Oil Trading Fib Extension levels are plotted above the Oil Trading Fib Extension indicator, these are the points where a trader will set the oil take profit orders.

How to Crude Oil Trade the Difference between Oil Fibonacci Retracement Levels and Oil Fibo Extension Levels in Oil Trading