How to Draw Commodity Trading Fibonacci Expansion
How Do I Use Commodities Trading Fibonacci Expansion Levels Technical Indicator on Commodity Trading Chart?
We use Commodity Fibonacci Expansion levels to estimate where the commodity trend movement will reach. There are Two important Commodity Trading Fibo Expansion areas: 61.8% & 100% Commodity Fibonacci Expansion Levels, these are used for profit taking.
To draw Commodity Trading Fibonacci Expansion levels on commodities chart we wait until the commodities trading price retracement is complete and commodities trading price starts to move in original direction of the Commodities trend. Where the commodities trading price retracement reaches is used as chart point 3. Commodity Trading Fibonacci Expansion Trading Indicator is plotted using three chart points as shown and illustrated on the commodity example illustrated and explained below of how to plot the Commodity Trading Fibonacci Expansion Technical Indicator Tool.
The Commodity Trading Fibo Expansion example illustrated & described below shows the Three Chart Points where the Commodity Trading Fibonacci Expansion technical indicator is plotted, marked as Chart point 1, Chart point 2 and Chart point 3.
Chart point 1 is where the commodity trend started, Chart point 2 is where the commodity trend pulled back & retraced and Chart point 3 is where the commodity retracement reached as displayed on the Commodity Trading Fibo Expansion Technical Indicator Tool example illustrated & explained below.
How to Trade With Commodities Trading Fibonacci Expansion - How to Draw Commodity Trading Fibonacci Expansion Levels Technical Indicator on Commodity Trading Charts
Please note where these Commodity Trading Fibonacci Expansion levels are plotted - Commodity Trading Fibonacci Expansion levels are plotted above Fibonacci indicator, these are the chart points where a trader will set the takeprofit orders using these Commodity Trading Fibonacci Expansion Levels - 61.8% and 100.0% Commodity Trading Fibonacci Expansion Areas.
Drawing Commodities Trading Fibonacci Expansion Levels Technical Indicator on an Upwards Commodities Trend
We use Commodity Fibonacci Expansion levels to estimate where the commodity trend movement will reach. There are Two important Commodity Trading Fibonacci Expansion areas: 61.8%Commodity Trading Fibonacci Expansion Level and 100% Commodity Trading Fibonacci Expansion Level, these Commodity Trading Fibo Expansion Levels are used for profit taking.
On the Commodity Trading Fibonacci Expansion indicator example illustrated and explained below you can see that the Commodity Trading Fibo Expansion technical indicator tool is plotted along the direction of the commodity trend, since the commodity trend is upwards - the Commodity Trading Fibonacci Expansion indicator is drawn upward.
These Commodity Trading Fibonacci Expansion areas are shown as horizontal lines above the Commodity Trading Fibo Expansion technical indicator, showing profit taking areas. In the commodity example illustrated and explained below if you had used of 100.0% Commodity Trading Fibonacci Expansion level you would have made nice profit from trade set up.
Drawing Commodity Fibo Expansion Indicator on an Upwards Commodities Trend - Commodity Trading Fibonacci Expansion Tool
From the above Commodity Trading Fibonacci Expansion indicator example, the upward commodity trend continued & both 61.80% and 100.00% Commodity Trading Fibonacci Expansion levels were all hit after which commodities trading price retraced again after getting to the 100.00% Commodity Trading Fibo Expansion level.
Drawing Commodity Trading Fibonacci Expansion Levels Technical Indicator on a Downwards Commodities Trend
Since we use the Commodity Trading Fibonacci Expansion indicator tool to estimate take profit levels, how do we draw Commodity Fibonacci Expansion in a downwards Commodities trend?
We draw the Commodity Trading Fibonacci Expansion indicator from chart point 1 to chart point 2 to chart point Three as shown and illustrated on commodity example illustrated and explained below. Remember we always plot this Commodity Trading Fibonacci Expansion tool in direction of the commodities trend. In the Commodity Trading Fibonacci Expansion example illustrated and explained below, can you figure what is the direction we have drawn it? That is right - downwards direction.
Try and identify the difference between how we have plotted Commodity Trading Fibonacci Expansion indicator above and how Commodity Trading Fibonacci Expansion indicator is drawn below. This time you would also have used Commodity Trading Fibonacci Expansion level 100.0%, just where the commodities trading price reached as shown on the commodity example illustrated and explained below. That would have been a good take profit area.
Drawing Commodity Fibo Expansion Indicator on a Downwards Commodities Trend - Commodity Trading Fibonacci Expansion Tool
From the Commodity Trading Fibonacci Expansion indicator example above, after plotting this Commodity Trading Fibonacci Expansion tool there are two levels which are used to show the profit taking areas, these two Commodity Trading Fibonacci Expansion levels are plotted represented as horizontal lines across the commodities trading price chart marked as 61.8%Commodity Trading Fibonacci Expansion Level and 100% Commodity Trading Fibo Expansion Level.
