How to Draw Stocks Fib Expansion on Upward Stocks Trend

Drawing Stocks Fib Expansion Levels on an Upward Stocks Trend

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 Fibo Expansion Level & 100% Stocks Fibonacci Expansion Level, these Stocks Fibonacci Expansion Levels are used for setting take profit levels.

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

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

How to Draw Stocks Fib Expansion on Upward Stocks Trend - How to Draw Fibonacci Expansion on Up Stocks Trend

From the above Stocks Fibonacci Expansion indicator tool example, the upward trend continued & both 61.80% & 100.0% Stocks Fibonacci Expansion levels were all hit after which the stocks price retraced again after getting to the 100.0% Stocks Fibonacci Expansion level.

From the Stocks Fibo Expansion tool examples above, after plotting this Stocks Fibonacci Expansion tool there are two levels that are used to show the profit taking areas, these two Stocks Fibo Expansion zones are plotted as horizontal lines across the stock chart marked as 61.8%Stocks Fibo Expansion Level & 100% Stocks Fibo Expansion Level.

Explanation of How to Draw Fibonacci Expansion Levels on Stock Charts

We use Stocks Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 important Stocks Fibo Expansion levels: 61.80% & 100% Stocks Fibo Expansion Levels, these are used for taking profit.

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 original direction of the Stocks trend. Where the stocks price retracement reaches is used as chart point 3. Stocks Fibo Expansion Technical Indicator is plotted using 3 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 & Chart point 3.

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

How to Draw Fibonacci Expansion Stock Indicator Tool on Upwards Stocks Trend

Please note where these Stocks Fib Expansion zones are plotted - Stocks Fibo Expansion zones are plotted above the Fibonacci technical indicator, these are chart points where a trader will place the take profit orders using these Stocks Fibo Expansion Levels - 61.80% & 100.00% Stocks Fibonacci Expansion Levels.