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