How Do I Draw Oil Trading Fibonacci Expansion Levels?

How Do I Trade Oil Trading and Draw Oil Fibonacci Expansion Levels?

Traders use Fibonacci expansion levels to estimate where the oil trend movement will reach. There are two commonly used Fibonacci expansion levels - 61.8% Oil Trading Fibonacci Expansion Level and 100% Oil Trading Fibonacci Expansion Levels, these fibonacci expansion levels are used for setting oil take profit areas.

To draw Oil Trading Fibonacci Expansion levels on the 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 crude oil trend. Where the crude oil price retracement reaches is used as oil chart point 3. Oil Trading Fibonacci Expansion Oil Technical Indicator is drawn using three oil chart points as shown on the Fib expansion crude oil trading example explained below of how to draw the Oil Trading Fibonacci Expansion Tool.

The Fibonacci expansion example explained below shows the 3 Crude Oil Chart Points where the Fibonacci expansion oil indicator is drawn, marked as Crude Oil Trading Chart point 1, Crude Oil Trading Chart point 2 & Crude Oil Trading Chart point 3.

Crude Oil Chart point 1 is where the oil trend started, Crude Oil Trading Chart point 2 is where the oil trend pulled back and retraced and Crude Oil Chart point 3 is where the oil retracement reached as displayed on the Oil Trading Fibonacci Expansion Indicator Tool example explained below.

How Do You Draw Oil Trading Fibonacci Expansion Levels? - How Do I Draw Oil Fib Expansion Levels?

Please note where these Oil Trading Fib Expansion zones are drawn - Oil Trading Fibo Expansion zones are plotted above the Fibo oil indicator, these are the crude oil chart points where a trader will set the oil take profit orders using these Oil Trading Fibo Expansion Levels - 61.80% & 100.00% Oil Fib Expansion Areas.

Drawing Crude Oil Fib Expansion Levels on an Upwards Crude Oil Trading Trend

We use Fibo expansion areas to estimate where the oil trend movement will reach. There are two commonly used Fibonacci expansion levels: 61.8% Oil Trading Fibo Expansion Level and 100% Oil Trading Fibonacci Expansion Level, these Oil Trading Fib Expansion Levels are used for profit taking.

On the Fibonacci expansion oil indicator example explained below you can see that the Fibonacci expansion oil technical indicator is drawn along the direction of the oil trend, since the oil trend is upward - the Fibonacci expansion levels oil indicator is drawn upwards.

These Fibo expansion levels are displayed as horizontal lines above the Oil Trading Fibonacci Expansion Indicator, showing oil profit taking areas. In the crude oil trading example explained below if you had used of 100.0% Fibonacci expansion level you would have made nice profit from the trade setup.

Drawing Oil Fibo Expansion Zones Technical Indicator on an Upwards Oil Trading Trend

From the above Fibonacci expansion oil indicator examples, the upwards oil trend continued and both 61.8% & 100.00% Fibonacci expansion levels were all hit after which crude oil price retraced again after getting to the 100.00% Oil Fibo Expansion level.

Drawing Oil Fibo Expansion Levels on a Downwards Oil Trading Trend

Since we use the Fibonacci expansion oil indicator tool to estimate oil take profit levels, how do we draw Oil Fibonacci Expansion in downwards Oil Trading trend?

We draw the Fibonacci expansion oil indicator tool from oil chart point 1 to oil chart point 2 to oil chart point 3 as shown on the Fibonacci expansion crude oil trading example explained below. Remember we always plot this Fibonacci expansion tool in the direction of the crude oil trend. In the Fibonacci expansion 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 Fibonacci expansion levels oil indicator above and how Oil Trading Fibonacci Expansion levels oil indicator is drawn below. This time you would also have used Fibonacci expansion level 100.0%, just where the crude oil price reached as illustrated on the Fibonacci expansion levels crude oil trading example explained below. This would have been a good oil take profit area.

Drawing Oil Fibo Expansion Zones Technical Indicator on a Downward Oil Trading Trend

From the Fibonacci expansion levels oil indicator example above, after drawing this Fibonacci expansion levels oil tool there are two levels which are used to show the oil profit taking areas - these two Fibonacci expansion levels are drawn as horizontal lines across the crude oil price chart marked as 61.8% Oil Trading Fibo Expansion Level and 100% Oil Fibonacci Expansion Level.

How Do You Trade Oil Trading and Draw Oil Trading Fibo Expansion Levels