How to Draw Crude Oil Trading Fibonacci Expansion

How Do You Use Oil Fib Expansion Levels Indicator on Oil Trading Chart?

We use Oil Fibo Expansion levels to estimate where the oil trend movement will reach. There are 2 important Oil Trading Fib Expansion levels: 61.8% & 100% Oil Fibo Expansion Levels, these are used for profit taking.

To draw Oil Trading Fib Expansion levels on the crude oil chart we wait until the crude crude oil price retracement is complete and the crude crude oil trading price starts to move in original direction of the Oil trend. Where the crude crude oil price retracement reaches is used as chart point 3. Oil Trading Fib Expansion Technical Indicator is drawn using three chart points as shown and illustrated on oil examples displayed below of how to draw the Oil Fibo Expansion Technical Indicator Tool.

The Oil Trading Fib Expansion example shown and illustrated below shows 3 Chart Points where the Oil Fibo Expansion technical indicator is drawn, marked as Chart point 1, Chart point 2 & Chart point 3.

Chart point 1 is where the oil trend started, Chart point 2 is where the oil trend pulled back & retraced & Chart point 3 is where the oil retracement reached as shown on the Oil Fibo Expansion Technical Indicator Tool examples shown and illustrated below.

How to Trade With Crude Oil Trading Fib Expansion – How to Draw Crude Oil Fib Expansion Levels Indicator on Oil Trading Charts

Please note where these Oil Trading Fib Expansion levels are drawn – Oil Trading Fib Expansion levels are drawn above Fibonacci indicator, these are the chart points where a oil trader will set the take profit orders using these Oil Trading Fib Expansion Levels – 61.8% & 100.0% Oil Fibo Expansion Levels.

Drawing Oil Trading Fibonacci Expansion Levels on an Upward Oil Trend

We use Oil Fibo Expansion levels to estimate where the oil trend movement will reach. There are 2 important Oil Trading Fibonacci Expansion levels: 61.8%Oil Trading Fib Expansion Level & 100% Oil Fibonacci Expansion Level, these Oil Trading Fib Expansion Levels are used for profit taking.

On the Oil Trading Fib Expansion indicator example shown below you can see that the Oil Fibo Expansion tool is drawn along the direction of the oil trend, since the oil trend is upward - the Oil Trading Fib Expansion indicator is drawn upwards.

These Oil Trading Fib Expansion levels are displayed as horizontal lines above Oil Trading Fib Expansion indicator, showing profit taking areas. In the oil examples shown below if you had used of 100.0% Oil Fibo Expansion level you would have made a nice profit from the trade set up.

Drawing Oil Trading Fib Expansion Indicator on an Upward Oil Trend - Oil Fibo Expansion Tool

From the above Oil Trading Fibonacci Expansion indicator examples, the upwards oil trend continued & both 61.80% & 100.0% Oil Trading Fibonacci Expansion levels were all hit after which crude crude oil trading price retraced again after getting to the 100.0% Oil Fibo Expansion level.

Drawing Oil Fibo Expansion Levels Indicator on a Downward Oil Trend

Since we use the Oil Trading Fibonacci Expansion indicator tool to estimate take profit levels, how do we draw Oil Fib Expansion in a downward Oil trend?

We draw the Oil Trading Fib Expansion indicator from chart point 1 to chart point 2 to chart point Three as shown and illustrated on oil examples shown below. Remember we always draw this Oil Fibo Expansion tool in the direction of the crude oil trend. In the Oil Fibo Expansion example illustrated below, can you determine what is direction we have drawn it? That's right – downwards direction.

Try & spot the difference between how we have drawn Oil Trading Fibonacci Expansion indicator above and how Oil Trading Fibonacci Expansion indicator is drawn below. This time you would also have used Oil Trading Fibonacci Expansion level 100.0%, just where the crude crude oil price reached as displayed on the oil example shown below. That would have been a good take profit area.

Drawing Oil Trading Fib Expansion Indicator on a Downwards Oil Trend - Oil Fibo Expansion Tool

From the Oil Trading Fibonacci Expansion indicator example above, after drawing this Oil Trading Fib Expansion tool there are two levels that are used to show profit taking areas, these two Oil Trading Fib Expansion levels are drawn represented as horizontal lines across the crude crude oil trading price chart marked as 61.8%Oil Trading Fib Expansion Level & 100% Oil Trading Fib Expansion Level.