How Do I Draw Fib Expansion Indicator on Stocks Charts?

Trading Stocks Read and Draw Fib Expansion Indicator on Stocks Charts

How Do I Draw Stocks Fib Expansion Levels on Stocks Charts?

Traders use Stocks Fib Expansion levels indicator to estimate where the trend movement will reach. There are Two important Stocks Fib Expansion levels: 61.8% and 100% Stocks Fib Expansion Levels, these are used for taking profit.

To draw Stocks Fib Expansion levels on the stock chart we wait until the stocks price retracement is complete and the price starts to move in the original direction of the Stocks trend. Where the stocks price retracement reaches is used as chart point 3. Fib Expansion Stocks Technical Indicator is plotted using three chart points as shown on the stocks example illustrated and explained below of how to plot the Stocks Fib Expansion Technical Indicator Tool.

The Stocks Fib Expansion stocks example illustrated and explained below shows the 3 Stock Chart Points where the Stocks Fib Expansion stocks technical indicator is drawn, marked as Stock Chart point 1, Stock Chart point 2 & Stock Chart point 3.

Stock Chart point 1 is where the stocks trend started, Stock Chart point 2 is where the stocks trend pulled back and retraced & Stock Chart point 3 is where the price retracement reached as illustrated on the Stocks Fib Expansion Technical Indicator Tool stocks examples illustrated & described below.

Stocks Trade With Stocks Fib Expansion? - How Do I Draw Stocks Fib Expansion Levels on Stocks Charts

Please note where these Stocks Fib Expansion levels are plotted - Stocks Fib Expansion levels are plotted above the Fibonacci stocks technical indicator, these are chart points where a trader will place the stocks take profit orders using these Stocks Fib Expansion Levels - 61.8% and 100.0% Stocks Fib Expansion Levels.

Drawing Stocks Fib Expansion Levels on an Upward Stocks Trend

We use Stocks Fib Expansion levels to estimate where the trend movement will reach. There are Two important Stocks Fib Expansion levels: 61.8%Stocks Fib Expansion Level and 100% Stocks Fib Expansion Level, these Stocks Fib Expansion Levels are used as stocks taking profit levels.

On the Stocks Fib Expansion indicator stocks example illustrated and explained below you can see that the Stocks Fib Expansion technical indicator is plotted along the direction of the trend, since the trend is upwards - the Stocks Fib Expansion indicator is drawn upwards.

These Stocks Fib Expansion levels are shown as horizontal lines above the Stocks Fib Expansion stocks technical technical indicator, showing the profit-taking areas. In the stocks example illustrated and explained below if you had used of 100.0% Stocks Fib Expansion level you would have made nice profit from the stocks trade setup.

Drawing Stocks Fib Expansion Indicator on an Upward Stocks Trend - Stocks Fib Expansion Tool

From the above Stocks Fib Expansion indicator stocks example, the upward trend continued & both 61.80% and 100.00% Stocks Fib Expansion levels were all hit after which stocks price retraced again after getting to the 100.00% Stocks Fib Expansion level.

Drawing Stocks Fib Expansion Areas on a Downward Stocks Trend

Since we use the Stocks Fib Expansion indicator tool to estimate stocks trading take profit levels, how do we draw Stocks Fib Expansion in a downward Stocks trend?

We draw the Stocks Fib Expansion technical indicator tool from chart point 1 to chart point 2 to chart point 3 as shown on the stocks example illustrated and explained below. Remember we always draw this Stocks Fib Expansion tool in direction of the market trend. In the Stocks Fib Expansion stocks example illustrated and explained below, can you figure what direction we have drawn it? That's right - downward direction.

Try and identify the difference between how we have plotted Stocks Fib Expansion indicator above and how Stocks Fib Expansion indicator is drawn below. This time you would also have used Stocks Fib Expansion level 100.0%, just where the price reached as shown on the stocks example illustrated and explained below. That would have been a good stocks take profit area.

Drawing Stocks Fib Expansion Indicator on a Downward Stocks Trend - Stocks Fib Expansion Tool

From the Stocks Fib Expansion indicator stocks example above, after plotting this Stocks Fib Expansion stocks tool there are 2 levels that are used to show the stocks trading profit taking levels, these two Stocks Fib Expansion levels are plotted as horizontal lines across the stock chart marked as 61.8%Stocks Fib Expansion Level and 100% Stocks Fib Expansion Level.

How Do You Draw Fib Expansion Indicator on Stocks Charts?