How to Draw Oil Trading Fib Expansion

How Do I Use Oil Fibo Expansion Levels on Oil Trading Chart?

We use Oil Fibonacci Expansion levels to estimate where the oil trend movement will reach. There are Two important Oil Trading Fibo Expansion areas: 61.8% & 100% Oil Fibonacci Expansion Levels, these are used for profit taking.

To draw Oil Trading Fibonacci Expansion levels on the oil chart 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 chart point 3. Oil Trading Fibonacci Expansion Trading 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 Fibonacci Expansion Tool.

The Oil Trading Fibonacci Expansion example explained below shows the 3 Chart Points where the Oil Fib Expansion 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 & retraced and Chart point 3 is where the oil retracement reached as displayed on the Oil Trading Fibonacci Expansion Technical Indicator Tool example explained below.

How to Trade With Oil Trading Fibonacci Expansion - How to Draw Oil Fibo Expansion Levels on Oil Trading Charts

Please note where these Oil Trading Fib Expansion levels are drawn - Oil Trading Fibo Expansion levels are plotted above the Fibo indicator, these are the chart points where a trader will place the take-profit orders using these Oil Fib Expansion Levels - 61.8% & 100.0% Oil Trading Fib Expansion Areas.

Drawing Oil Trading Fib Expansion Levels on an Upward Oil Trading Trend

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

On the Oil Trading Fibonacci Expansion indicator example explained below you can see that the Oil Trading Fibo Expansion technical indicator tool is drawn along the direction of the oil trend, since the oil trend is upwards - the Oil Trading Fibo Expansion indicator is drawn upwards.

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

Drawing Oil Trading Fibo Expansion Indicator on an Upwards Oil Trend - Oil Trading Fibonacci Expansion Tool

From the above Oil Trading Fibonacci Expansion indicator examples, the upwards oil trend continued & both 61.80% and 100.00% Oil Trading Fibonacci Expansion levels were all hit after which crude oil price retraced again after getting to the 100.00% Oil Trading Fibo Expansion level.

Drawing Crude Oil Trading Fib Expansion Levels on a Downwards Oil Trading Trend

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

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

Drawing Oil Trading Fibo Expansion Indicator on a Downwards Oil Trend - Oil Trading Fibonacci Expansion Tool

From the Oil Trading Fibonacci Expansion indicator example above, after drawing this Oil Trading Fibonacci Expansion tool there are 2 levels that are used to explain profit taking areas, these two Oil Trading Fibo Expansion levels are drawn represented as horizontal lines across the crude oil price chart marked as 61.8% Oil Trading Fibo Expansion Level & 100% Oil Trading Fibo Expansion Level.