Oil Trading Draw Fibonacci Projection Levels

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

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

To draw Fib Projection levels on the trading 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. Fibonacci Projection Oil Indicator is drawn using three oil chart points as displayed on the Fibonacci projection trading oil example explained below of how to draw the Fibonacci Projection Trading Crude Oil Indicator Tool.

The Fibonacci projection example explained below shows the 3 Crude Oil Trading Chart Points where the Fibonacci projection trading 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 shown and illustrated on the Fibo Projection Trading Crude Oil Indicator Tool example explained below.

Oil Trading Draw Fibonacci Projection Levels - Draw Fibonacci Projection Levels?

Please note where these Fib Projection levels are plotted - Fibonacci Projection zones are plotted above the Fib trading oil indicator, these are the crude oil chart points where a trader will set the oil take profit orders using these fibonacci Projection Levels - 61.8% and 100.0% Fibonacci Projection Levels.

Drawing Fibo Projection Zones on an Upward Crude Oil Trading Trend

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

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

These Fib projection levels are displayed as horizontal lines above the Fib Projection trading oil trading technical indicator, showing oil profit taking areas. In the trading oil example explained below if you had used of 100.0% Fibonacci projection level you would have made nice profit from the trade setup.

Drawing Fibo Projection Zones Trading Crude Oil Indicator on an Upward Oil Trading Trend

From the above Fibo projection trading oil indicator examples, the upwards oil trend continued and both 61.8% & 100.00% Fibonacci projection levels were all hit after which crude oil price retraced again after getting to the 100.0% Fibo Projection level.

Drawing Fibo Projection Levels on a Downward Crude Oil Trading Trend

Since we use the Fib projection trading oil indicator tool to estimate oil take profit levels, how do we draw Fibonacci Projection in a downward Oil Trading trend?

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

Drawing Fibo Projection Zones Trading Crude Oil Indicator on a Downward Oil Trading Trend

From the Fibo projection areas trading oil indicator example above, after drawing this Fibonacci projection areas trading oil tool there are 2 levels that are used to show the oil profit taking areas - these two Fibonacci projection levels are drawn as horizontal lines across the crude oil price chart marked as 61.8% Oil Trading Fib Projection Level and 100% Fibonacci Projection Level.

How Do You Trade Oil Trading and Draw Fibonacci Projection Areas