What is Difference between Oil Trading Fib Retracement and Oil Trading Fibonacci Expansion?

Crude Oil Trading Fib Retracement Areas

Fib retracement is drawn between 2 chart points but Fibo expansion is plotted using 3 chart points.

Oil Trading Fibonacci Retracement example explained below where the oil trend is heading downwards between Chart point 1 and Chart point 2, then after Chart point 2 the crude oil price retraces then it continues moving up in the original upward oil trend. Note that this Oil Trading Fibonacci Retracement indicator is drawn from Chart point 1 to Chart point 2 in the direction of the oil trend.

Oil Fibonacci Retracement Levels - How to Draw Oil Fib Retracement Zones

Crude Oil Trading Fibonacci Expansion Levels

Fib retracement is drawn between 2 chart points but Fibo expansion is plotted using 3 chart points.

To draw these Oil Trading Fibonacci Expansion levels 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 retracement reaches is used as chart point 3 for Fibonacci expansion.

The Oil Trading Fibonacci Expansion example explained below shows the 3 chart Points where the Oil Trading Fibonacci Expansion indicator is drawn, marked as chart point 1, 2 and 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 retracement reached as shown and illustrated on Oil Trading Fibonacci Expansion example explained below.

Oil Fibonacci Expansion Levels - How to Draw Oil Trading Fibo Expansion Levels

Please note where these Oil Trading Fib Expansion zones are drawn - Oil Trading Fibonacci Expansion zones are plotted above the Oil Trading Fibonacci Expansion indicator, these are the points where a trader will place the takeprofit orders.