How to Draw Stocks Fib Expansion on Downward Stocks Trend
Drawing Fibonacci Expansion Areas on a Downward Stock Trend
We draw the Stocks Fibonacci Expansion indicator from chart point 1 to chart point 2 to chart point 3 as displayed on the stocks example illustrated and explained below. Remember we always draw this Stocks Fibonacci Expansion tool in direction of the market trend. In the Stocks Fibonacci Expansion example illustrated and explained below, can you figure what direction we have drawn it? That's right - downward direction.
As a trader you would also have used Stocks Fibonacci Expansion level 100.0%, just where the price reached as shown on the Stocks Fibonacci Expansion example illustrated and explained below. That would have been a good take profit area.
How to Draw Stocks Fib Expansion on Downward Stocks Trend - How to Draw Fibonacci Expansion on Down Stocks Trend
From the Stocks Fibo Expansion indicator tool examples above, after plotting this Stocks Fibonacci Expansion indicator tool there are 2 levels that are used to show the profit taking levels, these two Stocks Fibonacci Expansion levels are plotted as horizontal lines across the stock chart marked as 61.8%Stocks Fibonacci Expansion Level & 100% Stocks Fibonacci Expansion Level.
Explanation of How to Draw Stocks Fib Expansion Levels on Stocks Charts
We use Stocks Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 oftenly used Stocks Fibonacci Expansion levels: 61.8% Stocks Fibonacci Expansion Level and 100% Stocks Fibonacci Expansion Levels, these are used for setting taking profit areas.
To draw Stocks Fibonacci 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. Stocks Fibonacci Expansion Indicator tool is drawn 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 Fibonacci Expansion example illustrated and explained below shows the 3 Chart Points where the Stocks Fibonacci Expansion indicator is drawn, marked as Chart point 1, Chart point 2 and Chart point 3.
Chart point 1 is where the stocks trend started, Chart point 2 is where the stocks trend pulled back and retraced & Chart point 3 is where the stocks retracement reached as displayed on the Stocks Fibonacci Expansion Technical Indicator Tool example illustrated & explained below.
How to Draw Fibonacci Expansion Stock Indicator Tool on Downwards Stocks Trend
Please note where these Stocks Fib Expansion levels are plotted - Stocks Fibonacci Expansion levels are plotted above the Fib technical indicator, these are chart points where a trader will place the take profit orders using these Stocks Fibonacci Expansion Levels - 61.8% Stocks Fibonacci Expansion Level and 100.0% Stocks Fibonacci Expansion Level.
