How to Draw Crude Oil Fibonacci Extension on Upwards Oil Trend
Drawing Crude Oil Fibo Extension Levels Trading Indicator on an Upwards Oil Trend
We use Oil Fibonacci Extension Levels to estimate where the oil trend movement will reach. There are 2 oftenly used Oil Trading Fib Extension levels: 61.8%Oil Fibonacci Extension Level & 100% Oil Trading Fib Extension Level, these Oil Fibo Extension Levels are used for setting take profit levels.
On the Oil Trading Fib Extension indicator example shown below you can see that the Oil Fibo Extension tool is drawn along the direction of the oil trend, since the oil trend is up – the Oil Fibo Extension indicator is drawn upward.
These Oil Fibo Extension levels are displayed as horizontal lines above Oil Trading Fib Extension indicator, showing profit taking areas. In the oil examples shown below if you had used of 100.0% Oil Fibo Extension level the you would have made a nice profit from the trade set up.
How to Draw Oil Trading Fib Extension on Upward Oil Trend – How to Draw Oil Fibonacci Extension on Upwards Oil Trend
From the above Oil Trading Fib Extension indicator tool example, the upward oil trend continued & both 61.80% & 100.0% Oil Trading Fib Extension levels were all hit after which the crude crude oil trading price retraced again after getting to the 100.0% Oil Fibo Extension level.
From the Oil Trading Fib Extension indicator tool example above, after drawing this Oil Trading Fib Extension tool there are two levels that are used to show profit taking areas, these two Oil Trading Fib Extension levels are drawn represented as horizontal lines across the crude oil chart marked as 61.8%Oil Fibonacci Extension Level & 100% Oil Trading Fib Extension Level.
Explanation of How to Draw Oil Fibo Extension Levels Indicator on Crude Oil Trading Charts
We use Oil Fibonacci Extension Levels to estimate where the oil trend movement will reach. There are 2 important Oil Trading Fib Extension levels: 61.8% & 100% Oil Fibo Extension Levels, these are used for profit taking.
To draw Oil Trading Fib Extension 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 Extension Technical Indicator is drawn using three chart points as shown and illustrated on oil examples displayed below of how to draw the Oil Fibonacci Extension Technical Indicator Tool.
The Oil Fibo Extension example shown and illustrated below shows the 3 Chart Points where the Oil Fibo Extension 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 Extension Technical Indicator Tool examples shown and illustrated below.
How to Draw Crude Oil Trading Fib Extension Technical Indicator Tool on Upwards Oil Trend
Please note where these Oil Trading Fib Extension levels are drawn – Oil Trading Fib Extension 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 Extension Levels – 61.8% & 100.0% Oil Fibonacci Extension Levels.
