How to Draw Stocks Fib Extension on Upward Stocks Trend

Drawing Stocks Fib Extension Levels on an Upward Stocks Trend

We use Stocks Fibonacci Extension Zones to estimate where the trend movement will reach. There are 2 oftenly used Stocks Fibonacci Extension levels: 61.8%Stocks Fibonacci Extension Level & 100% Stocks Fib Extension Level, these Stocks Fibonacci Extension Levels are used for setting take profit levels.

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

These Stocks Fibonacci Extension zones are shown as horizontal lines above the Stocks Fibonacci Extension technical indicator, showing profit taking areas. In the stocks example illustrated and explained below if you had used of 100.0% Stocks Fibo Extension level you would have made a nice profit from using this setup.

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

From the above Stocks Fibonacci Extension indicator tool example, the upward trend continued & both 61.80% and 100.00% Stocks Fibonacci Extension zones were all hit after which the stocks price retraced again after getting to the 100.0% Stocks Fibonacci Extension level.

From the Stocks Fibo Extension indicator tool examples above, after plotting this Stocks Fibo Extension tool there are 2 levels which are used to show the profit taking areas, these 2 Stocks Fibo Extension areas are drawn as horizontal lines across the stock chart marked as 61.8%Stocks Fibonacci Extension Level & 100% Stocks Fib Extension Level.

Explanation of How to Draw Fibonacci Extension Levels on Stock Charts

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

To draw Stocks Fibonacci Extension 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 Fibo Extension Technical Indicator is plotted using three chart points as shown on the stocks example illustrated and explained below of how to plot the Stocks Fibonacci Extension Technical Indicator Tool.

The Stocks Fibonacci Extension example illustrated and explained below shows the 3 Chart Points where the Stocks Fibonacci Extension 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 Extension Technical Indicator Tool example illustrated & explained below.

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

Please note where these Stocks Fib Extension areas are drawn - Stocks Fib Extension levels are plotted above the Fibonacci technical indicator, these are chart points where a trader will place the take profit orders using these Stocks Fibonacci Extension Levels - 61.80% and 100.00% Stocks Fibonacci Extension Areas.