How to Draw Commodity Trading Fib Extension

How Do I Use Commodity Trading Fibonacci Extension Levels Technical Indicator on Commodity Trading Chart?

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

To draw Commodity Trading Fibonacci Extension 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 Extension Indicator is drawn using three chart points as shown on the commodity example illustrated and explained below of how to draw the Commodity Trading Fibonacci Extension Indicator Tool.

The Commodity Trading Fibonacci Extension example illustrated and explained below shows the 3 Chart Points where the Commodity Trading Fibonacci Extension 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 Extension Indicator Tool example illustrated and explained below.

How to Trade With Commodity Trading Fibonacci Extension - How to Draw Commodity Trading Fibonacci Extension Levels Commodities Indicator on Commodity Trading Charts

Please note where these Commodity Trading Fibonacci Extension levels are drawn - Commodity Trading Fibonacci Extension 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 Extension Levels - 61.8% and 100.0% Commodity Trading Fibonacci Extension Levels.

Drawing Commodity Trading Fibonacci Extension Levels Commodities Indicator on an Upward Commodities Trend

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

On the Commodity Trading Fibonacci Extension indicator example illustrated and explained below you can see that the Commodity Trading Fibonacci Extension indicator tool is drawn along the direction of the commodity trend, since the commodity trend is upwards - the Commodity Trading Fibonacci Extension indicator is drawn upwards.

These Commodity Trading Fibonacci Extension levels are displayed as horizontal lines above the Commodity Trading Fibonacci Extension indicator, showing profit taking areas. In the commodity example illustrated and explained below if you had used of 100.0% Commodity Trading Fibonacci Extension level you would have made nice profit from the trade setup.

Drawing Commodity Trading Fibonacci Extension Indicator on an Upward Commodities Trend - Commodity Trading Fibonacci Extension Trading Tool

From the above Commodity Trading Fibonacci Extension indicator example, the upward commodity trend continued and both 61.8% and 100.0% Commodity Trading Fibonacci Extension levels were all hit after which commodities price retraced again after getting to the 100.0 % Commodity Trading Fibonacci Extension level.

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

Since we use the Commodity Trading Fibonacci Extension indicator tool to estimate take profit levels, how do we draw Commodity Trading Fibonacci Extension in a downward Commodities trend?

We draw the Commodity Trading Fibonacci Extension 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 Extension tool in the direction of the commodities trend. In the Commodity Trading Fibonacci Extension example illustrated and explained below, can you figure what direction we have drawn it? That is right - downward direction.

Try and spot the difference between how we have drawn Commodity Trading Fibonacci Extension indicator above and how Commodity Trading Fibonacci Extension indicator is drawn below. This time you would also have used Commodity Trading Fibonacci Extension level 100.0%, just where the commodities price reached as shown on the commodity example illustrated and explained below. That would have been a good take profit area.

Drawing Commodity Trading Fibonacci Extension Indicator on a Downward Commodities Trend - Commodity Trading Fibonacci Extension Trading Tool

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