How Do I Calculate Oil Trading Fib Extension Levels?
To Calculate Oil Trading Fib Extension levels on oil charts we use the oil trading Oil Trading Fib Extension Indicator
What are the Oil Trading Fib Extension Levels?
- 61.8% Oil Trading Fib Extension Level
- 100% Oil Trading Fib Extension Level
We use Fibonacci expansion areas to estimate where the crude oil price movement will reach. There are 2 important fibonacci expansion levels: 61.8% and 100% Oil Trading Fibo Extension levels, these level are used for profit taking.
To draw Fib expansion we use Three chart points.
To draw Fibonacci extension levels we wait until the crude oil price retracement is complete and oil price starts to move in the original direction of the Oil Trading trend. Where the retracement reaches is used as point 3.
The example explained below shows the 3 Chart Points where the Fibonacci extension indicator is drawn, marked as chart point 1, 2 and 3. Chart point 1 is where the crude oil price oil trend started, Chart point 2 is where the crude oil price oil trend retraced and chart point 3 is where the crude oil price retracement reached as illustrated on the crude oil trading example explained below.
How Do You Calculate Oil Trading Fibonacci Extension Levels on Oil Trading Charts?
The two Fibo extension levels 61.8% & 100% Oil Trading Fib Extension levels were then drawn above the Oil Trading Fibo Extension Technical Indicator as shown on the crude oil trading example above.
