What is Difference between Commodities Fibonacci Retracement & Commodities Trading Fibonacci Expansion?
Commodities Trading Fib Retracement Levels
Fib retracement is drawn between 2 chart points but Fibo expansion is drawn using Three chart points.
Commodities Trading Fibonacci Retracement example illustrated and explained below where the commodity trend is heading downwards between Chart point 1 and Chart point 2, then after Chart point 2 the commodities price retraces then it continues moving up in the original upward commodities trend. Note that this Commodities Trading Fibonacci Retracement indicator is drawn from Chart point 1 to Chart point 2 in direction of the commodities trend.
Commodities Fibo Retracement Levels - How to Draw Commodities Trading Fib Retracement Levels
Commodities Trading Fib Expansion Levels
Fib retracement is drawn between 2 chart points but Fibo expansion is drawn using Three chart points.
To draw these Commodity Trading Fibonacci Expansion levels we wait until the commodities price retracement is complete & the commodities price starts to move in original direction of the Commodities trend. Where the retracement reaches is used as chart point 3 for Fibonacci expansion.
The Commodity Trading Fibo Expansion examples illustrated and described below shows the Three chart Points where the Commodity Trading Fibonacci Expansion indicator is drawn, marked as chart point 1, 2 and 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 retracement reached as shown and illustrated on the Commodity Trading Fibonacci Expansion examples illustrated & described below.
Commodity Fibo Expansion Levels - How to Draw Commodity Trading Fibonacci Expansion Areas
Please note where these Commodity Trading Fib Expansion zones are plotted - Commodity Trading Fibonacci Expansion zones are plotted above Commodity Trading Fibonacci Expansion indicator, these are the points where a trader will set the take-profit orders.
