How to Draw Commodity Trading Fib Expansion on Downwards Commodities Trend
Drawing Commodities Trading Fib Expansion Levels Technical Indicator on a Downward 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.
As a trader you would also have used Commodity Trading Fibonacci Expansion level 100.0%, just where the commodities trading 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 Downwards Commodities Trend - How to Draw Commodity Trading Fibo Expansion on Down Commodities Trend
From the Commodity Trading Fibo Expansion indicator tool examples above, after plotting this Commodity Trading Fibonacci Expansion indicator tool there are 2 levels that are used to show the profit taking levels, these two Commodity Trading Fibonacci Expansion levels are plotted represented as horizontal lines across the commodities chart marked as 61.8%Commodity Trading Fibonacci Expansion Level and 100% Commodity Trading Fibo Expansion Level.
Explanation of How to Draw Commodity Trading Fibonacci Expansion Levels Technical Indicator on Commodities Trading Charts
We use Commodity Fibonacci Expansion levels to estimate where the commodity trend movement will reach. There are 2 commonly used Commodity Trading Fibonacci Expansion areas: 61.8% Commodity Trading Fibonacci Expansion Level and 100% Commodity Trading Fibo Expansion Areas, these are used for setting taking profit areas.
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 Indicator tool is drawn using three chart points as shown 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 Draw Commodity Trading Fibonacci Expansion Technical Indicator Tool on Downwards Commodities Trend
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 Fib Expansion Levels - 61.8% Commodity Trading Fibonacci Expansion Level and 100.0% Commodity Trading Fibo Expansion Level.
