How to Use Oil Fibonacci Extension in Crude Oil Trading PDF

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

To draw Oil Trading Fib Extension levels on the MT4 crude 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 Fibonacci Extension MT4 Oil 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 Fibo Extension Technical Indicator MT4 Tool.

The Oil Fibo Extension MT4 Indicator example explained below shows the 3 Chart Points where the Oil Fibo Extension MT4 oil trading technical indicator is plotted, marked as Chart point 1, Chart point 2 and 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 Fibo Extension MT4 Indicator Tool example explained below.

How to Use Oil Trading Fib Extension Levels

How to Use Oil Fibonacci Extension Levels - Oil Fibonacci Extension Described

Please note where these Oil Trading Fib Extension levels are plotted - Oil Trading Fib Extension levels are plotted above the MT4 Fibonacci indicator, these are the chart points where a trader will place the take-profit orders using these Oil Fibonacci Extension Levels - 61.8% & 100.0% Oil Fibonacci Extension Levels.

Upward Oil Trend - How to Use Trading Fib Extension in Oil Trading PDF - How to Use Oil Fibonacci Extension Levels - Oil Trading Fib Extension Explained

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

On the Oil Fibo Extension MT4 indicator example explained below you can see that the Oil Fibo Extension MT4 technical indicator is drawn along the direction of the oil trend, since the oil trend is upwards - the MT4 Oil Trading Fib Extension technical indicator is plotted upwards.

These Oil Fibonacci Extension zones are shown as horizontal lines above the Oil Fibo Extension MT4 oil trading technical indicator, showing the profit-taking areas. In the crude oil trading example explained below if you had used of 100.0% Oil Trading Fibo Extension level you would have made good profit from the trade set up.

How to Use Oil Trading Fib Extension in Oil Trading PDF - How to Use Crude Oil Trading Fib Extension Levels

How to Use Crude Oil Fibonacci Extension in Crude Oil Trading PDF - How to Use Oil Trading Fib Extension Levels

From the above Oil Fibo Extension MT4 indicator examples, the upwards oil trend continued & both 61.80% and 100.00% Oil Trading Fib Extension zones were all hit after which crude oil price retraced again after getting to the 100.00% Oil Trading Fibo Extension level.

How to Use Oil Fibonacci Extension in Crude Oil Trading PDF

Since we use the Oil Fibo Extension MT4 indicator tool to estimate take profit levels, how do we draw MT4 Oil Fibonacci Extension in a downwards Oil Trading trend?

We draw the Oil Fibo Extension MT4 indicator tool from chart point 1 to chart point 2 to chart point 3 as shown on the crude oil trading example explained below. Remember we always plot this Oil Fibo Extension MT4 oil tool in the direction of the oil trend. In the Oil Trading Fib Extension 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 Fib Extension technical indicator above and how Oil Trading Fib Extension technical indicator is plotted below. This time you would also have used Oil Trading Fib Extension 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 level for taking profit.

How to Use Oil Trading Fib Extension in Oil Trading PDF - How to Use Crude Oil Trading Fib Extension Levels

How to Use Crude Oil Fibonacci Extension in Crude Oil Trading PDF - How to Use Oil Trading Fib Extension Levels

From the Oil Fibo Extension MT4 indicator examples above, after drawing this MT4 Oil Trading Fibo Extension tool there are 2 levels that are used to explain the profit taking areas, these two Oil Trading Fibo Extension levels are plotted represented as horizontal lines across the crude oil price chart marked as 61.8% Oil Trading Fibo Extension Level & 100% Oil Trading Fib Extension Level.