How to Draw Oil Fibonacci Expansion on Downwards Oil Trading Trend

How Do You Draw Oil Trading Fibonacci Retracement Expansion for Oil Trading Downtrend?

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.

As a trader you would also have used Oil Trading Fibonacci Expansion level 100.0%, just where the crude oil price reached as shown on the Oil Trading Fibonacci Expansion example explained below. That would have been a good take profit area.

How to Draw Oil Fibonacci Expansion on Downwards Oil Trading Trend

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

Explanation of How to Draw Oil Trading Fib Expansion Levels on Oil Trading Charts

We use Oil Fibonacci Expansion levels to estimate where the oil trend movement will reach. There are 2 oftenly used Oil Trading Fibonacci Expansion areas: 61.8% Oil Trading Fibonacci Expansion Level and 100% Oil Trading Fibo Expansion Areas, these are used for setting taking profit areas.

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 Indicator tool is drawn using three chart points as shown 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 Draw Oil Trading Fibonacci Expansion Tool on Downwards Oil Trading Trend

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% Oil Trading Fibonacci Expansion Level and 100.0% Oil Trading Fibo Expansion Level.