How Do I Calculate Commodity Trading Fibonacci Extension Levels?

To Calculate Commodity Trading Fibonacci Extension levels on commodities charts we use the commodity Fibonacci Extension Indicator

What are the Commodity Trading Fibonacci Extension Levels?

• 61.8%Commodity Trading Fibonacci Extension Level
• 100% Commodity Trading Fibonacci Extension Level

We use Fibonacci expansion levels to estimate where the commodities price movement will reach. There are 2 important fibonacci expansion levels; 61.8% and 100% Commodity Trading Fibonacci Extension levels, these level are used for taking profit.

To draw Fibonacci expansion we use 3 chart points.

To draw Fibonacci extension levels we wait until the commodities price retracement is complete and the commodity instrument starts to move in the original direction of the Commodities trend. Where the retracement reaches is used as point 3.

The example illustrated and explained below shows the 3 Chart Points where the Fibonacci extension indicator is drawn, marked as chart point 1, 2 and 3. Chart point 1 is where the commodities price commodity trend started, Chart point 2 is where the commodities price commodity trend retraced and chart point 3 is where the commodities price retracement reached as shown on the commodity example illustrated and explained below.

How Do I Calculate Commodity Trading Fibonacci Extension Levels Commodity Indicator on Commodity Trading Charts? - Commodity Trading Fibonacci Extension Indicator Explained

The two Fibonacci extension levels 61.8% and 100% Commodity Trading Fibonacci Extension levels were then drawn above the Commodity Trading Fibonacci Extension Indicator as shown on the commodity example above.