How to Draw Oil Trading Fibonacci Projection on Upward Oil Trading Trend
Trading Crude Oil Draw Fibonacci Projection for Oil Trading Uptrend
We use Fibonacci Projection levels to estimate where the oil trend movement will reach. There are 2 oftenly used Fibonacci Projection levels: 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level, these Fibonacci Projection Levels are used for setting take profit areas.
On the Fibonacci Projection technical indicator example explained below you can see that the Fibonacci Projection technical indicator is drawn along the direction of the oil trend, since the oil trend is up - the Fibonacci Projection technical indicator is drawn upwards.
These Fibo Projection levels are displayed as horizontal lines above the Fibo Projection technical indicator, showing profit taking areas. In the crude oil trading example explained below if you had used of 100.0% Fibonacci Projection level you would have made nice profit from the trade setup.
How to Draw Oil Trading Fibonacci Projection on Upward Oil Trend - How to Draw Fibonacci Projection on Up Oil Trading Trend
From the above Fibonacci Projection technical indicator tool example, the upward oil trend continued and both 61.8% & 100.00% Fibonacci Projection levels were all hit after which the crude oil price retraced again after getting to the 100.00% Fibonacci Projection level.
From the Fibonacci Projection technical indicator tool example above, after drawing this Fibonacci Projection tool there are 2 levels that are used to show the profit-taking areas, these two Fibonacci Projection levels are plotted as horizontal lines across the oil chart marked as 61.80%Fibonacci Projection Level & 100% Fibo Projection Level.
Explanation of How to Draw Fibonacci Projection Zones on Crude Oil Trading Charts
We use Fibonacci Projection levels to estimate where the oil trend movement will reach. There are 2 important Fibo Projection levels: 61.8% & 100% Fib Projection Levels, these are used for profit taking.
To draw Fib Projection 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 Oil Trading trend. Where the crude oil price retracement reaches is used as chart point 3. Fibo Projection Technical Indicator is drawn using 3 chart points as shown and illustrated on the crude oil trading example explained below of how to draw the Fibonacci Projection Indicator Tool.
The Fibonacci Projection example explained below shows the 3 Chart Points where the Fibonacci Projection 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 and retraced & Chart point 3 is where the oil retracement reached as shown on the Fib Projection Technical Indicator Tool example explained below.
How to Draw Fib Projection Crude Oil Technical Indicator Tool on Upwards Oil Trading Trend
Please note where these Fibonacci Projection levels are drawn - Fibo Projection zones are plotted above the Fibo indicator, these are the chart points where a trader will place the take-profit orders using these Fib Projection Levels - 61.80% and 100.00% Fibonacci Projection Levels.
