Stocks Fibonacci Extension MetaTrader 4 Indicator
How to Use Fibonacci Extension in Stocks
We use Stocks Fibo Extension Levels to estimate where the market trend movement will reach. There are Two important Stocks Fibo Extension levels: 61.80% & 100% Stocks Fibo Extension Levels, these are used for taking profit.
To draw Stocks Fib Extension levels in the MT4 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 Fibonacci Extension MetaTrader 4 Technical Indicator is plotted using 3 chart points as shown and illustrated on the stocks example illustrated and explained below of how to plot the Stocks Fib Extension Technical Indicator MetaTrader 4 Tool.
The Stocks Fibonacci Extension MetaTrader 4 Indicator example illustrated and explained below shows the 3 Chart Points where the Stocks Fibonacci Extension MetaTrader 4 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 Extension MetaTrader 4 Indicator Tool examples illustrated & described below.
Stocks Fibonacci Extension MetaTrader 4 Technical Indicator
Stocks Fib Extension MT4 Indicator - Stocks Fib Extension Calculator
Please note where these Stocks Fib Extension areas are drawn - Stocks Fibo Extension zones are plotted above the MT4 Fibonacci technical indicator, these are chart points where a trader will place the take profit orders using these Stocks Fibo Extension Levels - 61.80% & 100.00% Stocks Fibo Extension Areas.
Upward Stocks Trend
We use Stocks Fibo Extension Levels to estimate where the market trend movement will reach. There are Two important Stocks Fibo Extension levels: 61.8%Stocks Fibo Extension Level & 100% Stocks Fib Extension Level, these Stocks Fib Extension Levels are used for taking profit.
On the Stocks Fibonacci Extension MetaTrader 4 indicator example illustrated and explained below you can see that the Stocks Fibonacci Extension MetaTrader 4 technical indicator is plotted along the direction of the trend, since the trend is upward - MetaTrader 4 Stocks Fibo Extension technical indicator is drawn upward.
These Stocks Fibo Extension zones are displayed as horizontal lines above the Stocks Fibonacci Extension MetaTrader 4 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 the you would have made good profit from this trading setup.
Upward Stocks Trend - Stocks Fibonacci Extension MetaTrader 4 Technical Indicator
Stocks Fib Extension MT4 Indicator - Stocks Fib Extension Calculator
From the above Stocks Fibonacci Extension MetaTrader 4 indicator examples, the upwards trend continued & both 61.80% & 100.0% Stocks Fibo Extension zones were all hit after which stocks price retraced again after getting to the 100.0% Stocks Fibonacci Extension level.
Downward Stocks Trend
Since we use the Stocks Fibonacci Extension MetaTrader 4 tool to estimate take profit levels, how do we draw MetaTrader 4 Fibonacci Extension in a downward Stocks trend?
We draw the Stocks Fibonacci Extension MT4 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 Fibo Extension MT4 tool in direction of the trend. In the Stocks Fibonacci Extension example illustrated and explained below, can you figure what direction we have drawn it? That's right - downward direction.
Try & identify the difference between how we have drawn Stocks Fibo Extension indicator above & how Stocks Fibo Extension technical indicator is drawn below. This time you would also have used Stocks Fibo Extension level 100.00%, just where the price reached as shown on the stocks example illustrated and explained below. That would have been a good level for taking profit.
Downward Stocks Trend - Stocks Fibonacci Extension MetaTrader 4 Technical Indicator
Stock Fibonacci Extension MetaTrader 4 Indicator - Stocks Fib Extension Calculator
From the Stocks Fibonacci Extension MetaTrader 4 indicator example above, after plotting this MT4 Stocks Fibo Extension tool there are two levels which are used to show the profit taking areas, these two Stocks Fibo Extension levels are drawn as horizontal lines across the stocks price trading chart marked as 61.8%Stocks Fibo Extension Level & 100% Stocks Fib Extension Level.
