How Do I Calculate Commodity Trading Fib Extension Levels?

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

What are the Commodity Trading Fib Extension Levels?

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

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

To draw Fib expansion we use Three chart points.

To draw Fibonacci extension levels we wait until the commodities trading price retracement is complete and 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 trading price commodity trend started, Chart point 2 is where the commodities trading price commodity trend retraced and chart point 3 is where the commodities trading price retracement reached as displayed on the commodity example illustrated & described below.

How Do You Calculate Commodity Trading Fib Extension Areas Technical Indicator on Commodity Charts? - Commodity Trading Fibo Extension Technical Indicator Explained

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