Fibonacci Extension Bitcoin Indicator Tutorial
We use Fibo Extension Levels to estimate where the bitcoin trend movement will reach. There are Two important Fibo Extension areas: 61.80% & 100% Fibo Extension Areas, these are used for taking profit.
To draw Fibonacci Extension levels in MT4 btcusd chart we wait until the bitcoin price retracement is complete and the bitcoin price starts to move in the original direction of the Bitcoin trend. Where the bitcoin trading price retracement reaches is used as chart point 3. Fibo Extension MT4 Technical Indicator is plotted using 3 chart points as shown on the cryptocurrency trading example illustrated below of how to draw the Fibonacci Extension Indicator MetaTrader 4 Tool.
The Fibo Extension MetaTrader 4 Indicator example illustrated below shows the 3 Chart Points where the Fibo Extension MetaTrader 4 bitcoin technical technical indicator is plotted, marked as Chart point 1, Chart point 2 & Chart point 3.
Chart point 1 is where the bitcoin trend started, Chart point 2 is where the bitcoin trend pulled back & retraced & Chart point 3 is where the cryptocurrency retracement reached as shown on the Fibo Extension MetaTrader 4 Cryptocurrency Indicator Tool example illustrated below.
Fibonacci Extension Crypto Indicator Tutorial
Fibonacci Extension Cryptocurrency Technical Indicator Guide - Fibonacci Extension Levels Guide
Please note where these Fibonacci Extension areas are plotted - Fibo Extension levels are drawn above the MT4 Fibonacci indicator, these are the chart points where a trader will set the takeprofit orders using these Fibonacci Extension Levels - 61.80% & 100.00% Fibo Extension Areas.
Upward Bitcoin Trend - Fibonacci Extension Bitcoin Trading Tutorial - Fibo Extension Cryptocurrency Indicator Guide - Fibonacci Extension Levels Guide
We use Fibo Extension Levels to estimate where the bitcoin trend movement will reach. There are Two important Fibo Extension areas: 61.80% BTCUSD Trading Fib Extension Level & 100% Fibonacci Extension Level, these Fibonacci Extension Areas are used for taking profit.
On the Fibo Extension MetaTrader 4 cryptocurrency indicator example illustrated below you can see that the Fibo Extension MetaTrader 4 cryptocurrency technical indicator tool is plotted along the direction of the bitcoin trend, since the bitcoin trend is upwards - MT4 Fibo Extension technical indicator is plotted upward.
These Fibo Extension levels are shown as horizontal lines above the Fibo Extension MetaTrader 4 bitcoin technical technical indicator, showing the profit-taking areas. In the cryptocurrency trading example illustrated below if you had used of 100.0% Fibo Extension level the you would have made good profit from this trading setup.
Fibonacci Extension Crypto Trading Tutorial - Fibo Extension Crypto Indicator Tutorial
Fibonacci Extension Cryptocurrency Technical Indicator Guide - Fibonacci Extension Levels Guide
From the above Fibo Extension MetaTrader 4 cryptocurrency indicator example, the upward bitcoin trend continued & both 61.80% & 100.0% Fibo Extension levels were all hit after which bitcoin price retraced again after getting to the 100.0% Fibo Extension level.
Fibonacci Extension Bitcoin Trading Guide
Since we use the Fibo Extension MetaTrader 4 cryptocurrency tool to estimate take profit levels, how do we draw MetaTrader 4 Fibonacci Extension in a downward Crypto trend?
We draw the Fibo Extension MetaTrader 4 cryptocurrency tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the cryptocurrency trading example illustrated below. Remember we always draw this Fibo Extension MetaTrader 4 cryptocurrency tool in direction of the cryptocurrency trend. In the Fibonacci Extension example illustrated below, can you figure what is the direction which we have drawn it? That's right - downwards direction.
Try & identify the difference between how we have plotted Fibo Extension technical indicator above and how Fibo Extension technical indicator is plotted below. This time you would also have used Fibonacci Extension level 100.0%, just where the bitcoin price reached as shown on the cryptocurrency trading example illustrated below. That would have been a good level for profit taking.
Fibonacci Extension Crypto Trading Tutorial - Fibo Extension Crypto Indicator Tutorial
Fibonacci Extension Cryptocurrency Technical Indicator Guide - Fibonacci Extension Levels Guide
From the Fibo Extension MetaTrader 4 cryptocurrency indicator example above, after plotting this MetaTrader 4 Fibo Extension tool there are two levels that are used to show the profit taking areas, these two Fibo Extension areas are plotted as horizontal lines across the bitcoin trading price chart marked as 61.80% BTCUSD Fibo Extension Level & 100% Fibo Extension Level.
