How to Draw Commodity Trading Fib Expansion on Downward Commodities Trend

Drawing Commodity Trading Fibonacci Expansion Levels Commodities Technical Indicator on a Downward Commodities Trend

We draw the Commodity Trading Fibonacci Expansion indicator tool from chart point 1 to chart point 2 to chart point 3 as shown on the commodity example illustrated and explained below. Remember we always draw this Commodity Trading Fibonacci Expansion tool in the direction of the commodities trend. In the Commodity Trading Fibonacci Expansion example illustrated and explained below, can you figure what direction we have drawn it? That is right - downward direction.

As a commodity trader you would also have used Commodity Trading Fibonacci Expansion level 100.0%, just where the commodities price reached as shown on the Commodity Trading Fibonacci Expansion example illustrated and explained below. That would have been a good take profit area.

How to Draw Commodity Trading Fib Expansion on Downward Commodities Trend - How to Draw Commodity Trading Fibonacci Expansion on Down Commodities Trend

From the Commodity Trading Fibonacci Expansion indicator tool example above, after drawing this Commodity Trading Fibonacci Expansion indicator tool there are two levels that are used to show the profit taking levels, these two Commodity Trading Fibonacci Expansion levels are drawn as horizontal lines across the commodities chart marked as 61.8%Commodity Trading Fibonacci Expansion Level and 100% Commodity Trading Fibonacci Expansion Level.

Explanation of How to Draw Commodity Trading Fibonacci Expansion Levels Commodity Trading Indicator on Commodities Trading Charts

We use Commodity Trading Fibonacci Expansion levels to estimate where the commodity trend movement will reach. There are 2 commonly used Commodity Trading Fibonacci Expansion levels; 61.8% Commodity Trading Fibonacci Expansion Level and 100% Commodity Trading Fibonacci Expansion Levels, these are used for setting taking profit levels.

To draw Commodity Trading Fibonacci Expansion levels on the commodities chart we wait until the commodities price retracement is complete and the commodities price starts to move in the original direction of the Commodities trend. Where the commodities price retracement reaches is used as chart point 3. Commodity Trading Fibonacci Expansion Indicator tool is drawn using three chart points as shown on the commodity example illustrated and explained below of how to draw the Commodity Trading Fibonacci Expansion Indicator Tool.

The Commodity Trading Fibonacci Expansion example illustrated and explained below shows the 3 Chart Points where the Commodity Trading Fibonacci Expansion indicator is drawn, 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 and retraced and Chart point 3 is where the commodity retracement reached as shown on the Commodity Trading Fibonacci Expansion Indicator Tool example illustrated and explained below.

How to Draw Commodity Trading Fibonacci Expansion Commodity Trading Indicator Tool on Downwards Commodities Trend

Please note where these Commodity Trading Fibonacci Expansion levels are drawn - Commodity Trading Fibonacci Expansion levels are drawn above the Fibonacci indicator, these are the chart points where a commodity trader will set the take profit orders using these Commodity Trading Fibonacci Expansion Levels - 61.8% Commodity Trading Fibonacci Expansion Level and 100.0% Commodity Trading Fibonacci Expansion Level.