How Do I Analyze the Difference between Stock Fibonacci Retracement Levels and Fibonacci Extension Levels in Stocks?
Trading Stocks Read the Difference between Stock Fibonacci Retracement Levels and Fibonacci Extension Levels in Stocks
Fibonacci Retracement Levels in Stocks
Fibo retracement is drawn between 2 chart points but Fib extension is plotted using 3 chart points.
Stock Fibonacci Retracement Level stocks example illustrated and explained below where the stocks trend is moving down between Stock Chart point 1 and Stock Chart point 2, then after Stock Chart point 2 the stocks price retraces then it continues moving upward in the original upwards trend. Note that this Stock Fibonacci Retracement Levels indicator is drawn from Stock Chart point 1 to Stock Chart point 2 in direction of the trend.
Stock Fib Retracement Levels - How Do I Draw Stock Fibonacci Retracement Zones
Fibonacci Extension Levels in Stocks
Fibo retracement is drawn between 2 chart points but Fib extension is plotted using 3 chart points.
To draw these Stocks Fibonacci Extension zones 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 for fibonacci extension in stocks.
The Stocks Fibonacci Extension stocks example illustrated and explained below shows the 3 stocks chart Points where the Stocks Fibonacci Extension indicator is drawn, marked as chart points 1, 2 and 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 Fibonacci Extension stocks examples illustrated & described below.
Stocks Fibo Extension Levels - How Do I Draw Stocks Fibonacci Extension Levels
Please note where these Stocks Fib Extension areas are drawn - Stocks Fibonacci Extension levels are plotted above the Stocks Fibonacci Extension indicator, these are the points where a trader will set the stocks trading take profit orders.
How Do I Analyze the Difference between Stock Fibonacci Retracement Levels and Fibonacci Extension Levels in Stocks
