How to Draw Commodity Trading Fib Extension on Downward Commodities Trend
Drawing Commodity Trading Fibonacci Extension Levels Commodity Indicator on 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.
As a commodity trader you would also have used Commodity Trading Fibonacci Extension level 100.0%, just where the commodities price reached as shown on the Commodity Trading Fibonacci Extension example illustrated and explained below. That would have been a good take profit area.
How to Draw Commodity Trading Fib Extension on Downward Commodities Trend - How to Draw Commodity Trading Fibonacci Extension on Down Commodities Trend
From the Commodity Trading Fibonacci Extension indicator tool example above, after drawing this Commodity Trading Fibonacci Extension indicator tool there are two levels that are used to show the profit taking levels, these two Commodity Trading Fibonacci Extension levels are drawn as horizontal lines across the commodities chart marked as 61.8%Commodity Trading Fibonacci Extension Level and 100% Commodity Trading Fibonacci Extension Level.
Explanation of How to Draw Commodity Trading Fibonacci Extension Levels on Commodities Trading Charts
We use Commodity Trading Fibonacci Extension Levels to estimate where the commodity trend movement will reach. There are 2 commonly used Commodity Trading Fibonacci Extension levels; 61.8% Commodity Trading Fibonacci Extension Level and 100% Commodity Trading Fibonacci Extension Levels, these are used for setting taking profit levels.
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 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 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 Draw Commodity Trading Fibonacci Extension Commodity Technical Indicator Tool on Downwards Commodities Trend
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% Commodity Trading Fibonacci Extension Level and 100.0% Commodity Trading Fibonacci Extension Level.
