Commodity Fibo Extension MT4 Indicator

How to Use Commodity Trading Fibonacci Extension in Commodities

We use Commodity Fibonacci Extension Levels to estimate where the commodity trend movement will reach. There are Two important Commodity Fibonacci Extension levels: 61.80% and 100% Commodity Fibonacci Extension Levels, these are used for profit taking.

To draw Commodity Fibonacci Extension levels on MT4 commodities chart we wait until the commodities price retracement is complete & the commodities price starts to move in original direction of the Commodities trend. Where the commodities price retracement reaches is used as chart point 3. Commodity Fibo Extension MT4 Indicator is plotted using three chart points as shown and illustrated on commodity example illustrated and explained below of how to plot the Commodity Fib Extension Technical Indicator MT4 Tool.

The Commodity Trading Fibonacci Extension MT4 Indicator example illustrated and explained below shows the 3 Chart Points where the Commodity Trading Fibonacci Extension MT4 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 & retraced and Chart point 3 is where the commodity retracement reached as displayed on the Commodity Trading Fibonacci Extension MT4 Indicator Tool example illustrated & explained below.

Commodity Fibo Extension MT4 Technical Indicator

Commodities Fibo Extension MT4 Indicator - Commodity Fibonacci Extension Calculation

Please note where these Commodity Fib Extension areas are drawn - Commodity Fibonacci Extension areas are drawn above MT4 Fibonacci indicator, these are the chart points where a trader will set the takeprofit orders using these Commodity Fibonacci Extension Levels - 61.8% and 100.0% Commodity Fibonacci Extension Areas.

Upward Commodity Trend

We use Commodity Fibonacci Extension Levels to estimate where the commodity trend movement will reach. There are Two important Commodity Fibonacci Extension levels: 61.8%Commodity Fibonacci Extension Level & 100% Commodity Fib Extension Level, these Commodity Fibonacci Extension Levels are used for profit taking.

On the Commodity Trading Fibonacci Extension MT4 indicator example illustrated and explained below you can see that the Commodity Trading Fibonacci Extension MT4 technical indicator is plotted along the direction of the commodity trend, since the commodity trend is upward - MetaTrader 4 Commodity Fibonacci Extension technical indicator is drawn upwards.

These Commodity Fibonacci Extension levels are shown as horizontal lines above the Commodity Trading Fibonacci Extension MT4 commodities technical technical indicator, showing profit taking areas. In the commodity example illustrated and explained below if you had used of 100.0% Commodity Fibonacci Extension level you would have made good profit from the trade set up.

Upwards Commodities Trend - Commodity Fibo Extension MT4 Technical Indicator

Commodities Trading Fib Extension MT4 Indicator - Commodities Trading Fib Extension Calculator

From the above Commodity Trading Fibonacci Extension MT4 indicator examples, the upwards commodity trend continued & both 61.80% and 100.00% Commodity Fibonacci Extension levels were all hit after which commodities price retraced again after getting to the 100.00% Commodity Trading Fibo Extension level.

Downwards Commodities Trend

Since we use the Commodity Trading Fibonacci Extension MT4 commodity tool to estimate take profit levels, how do we draw MT4 Commodity Trading Fibonacci Extension in a downward Commodities trend?

We draw the Commodity Trading Fibonacci Extension MT4 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 MT4 commodity tool in direction of the commodities trend. In the Commodity Fibonacci Extension example illustrated and explained below, can you figure what is the direction we have drawn it? That is right - downwards direction.

Try & identify the difference between how we have plotted Commodity Fibonacci Extension indicator above & how Commodity Fibonacci Extension technical indicator is drawn below. This time you would also have used Commodity 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 level for take profit.

Downwards Commodities Trend - Commodity Fibo Extension MT4 Technical Indicator

Commodity Fibo Extension MT4 Indicator - Commodity Fibonacci Extension Calculator

From the Commodity Trading Fibonacci Extension MT4 indicator examples above, after plotting this MT4 Commodity Fibonacci Extension tool there are two levels that are used to show profit taking areas, these two Commodity Fibonacci Extension areas are drawn represented as horizontal lines across the commodities price chart marked as 61.8%Commodity Fibonacci Extension Level & 100% Commodity Fib Extension Level.