What is the Difference between Commodities Trading Fibonacci Retracement and Commodity Trading Fibonacci Extension?
How to use Commodities Trading Fibonacci Retracement and Extension and the Difference between Commodities Trading Fibonacci Retracement and Extension
Commodities Trading Fibonacci Retracement Levels
Fibonacci retracement is drawn between 2 chart points but Fibonacci extension is drawn using 3 chart points.
Commodities Trading Fibonacci Retracement Level example illustrated and explained below where the commodity trend is moving down between Chart point 1 and Chart point 2, then after Chart point 2 the commodities price retraces then it continues moving upward in the original upward commodities trend. Note that this Commodities Trading Fibonacci Retracement Levels indicator is drawn from Chart point 1 to Chart point 2 in the direction of the commodities trend.
Commodities Trading Fibonacci Retracement Levels - How to Draw Commodities Trading Fibonacci Retracement Levels
Commodity Trading Fibonacci Extension Levels
Fibonacci retracement is drawn between 2 chart points but Fibonacci extension is drawn using 3 chart points.
To draw these Commodity Trading Fibonacci Extension levels 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 retracement reaches is used as chart point 3 for Fibonacci extension.
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, 2 and 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 retracement reached as shown on the Commodity Trading Fibonacci Extension example illustrated and explained below.
Commodity Trading Fibonacci Extension Levels - How to Draw Commodity Trading Fibonacci Extension Levels
Please note where these Commodity Trading Fibonacci Extension levels are drawn - Commodity Trading Fibonacci Extension levels are drawn above the Commodity Trading Fibonacci Extension indicator, these are the points where a commodity trader will set the take profit orders.
