How to Draw Bitcoin Trading Fibonacci Expansion

How Do I Use Fibonacci Expansion Levels on Bitcoin Chart?

We use Fibonacci Expansion levels to estimate where the bitcoin trend movement will reach. There are Two important Fibo Expansion areas: 61.80% & 100% Fibo Expansion Areas, these are used for taking profit.

To draw Fibo Expansion levels on the cryptocurrency 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 Expansion Technical Indicator is plotted using 3 chart points as shown on the cryptocurrency trading example illustrated below of how to draw the Fibonacci Expansion Technical Indicator Tool.

The Fibonacci Expansion example illustrated below shows the 3 Chart Points where the Fibonacci Expansion 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 Fibonacci Expansion Technical Indicator Tool example illustrated below.

How to Trade with Fibonacci Expansion? - How to Draw Fibonacci Expansion Levels on Bitcoin Charts

Please note where these Fibonacci Expansion levels are plotted - Fibo Expansion levels are drawn above the Fibonacci indicator, these are the chart points where a trader will set the takeprofit orders using these Fibonacci Expansion Levels - 61.80% & 100.00% Fibo Expansion Areas.

Drawing Fib Expansion Levels on an Upward BTCUSD Trend

We use Fibonacci Expansion levels to estimate where the bitcoin trend movement will reach. There are Two important Fibonacci Expansion areas: 61.8% Bitcoin Trading Fibonacci Expansion Level & 100% Fibonacci Expansion Level, these Fibonacci Expansion Levels are used for taking profit.

On the Fibonacci Expansion indicator example illustrated below you can see that the Fibonacci Expansion technical indicator tool is plotted along the direction of the bitcoin trend, since the bitcoin trend is upward - the Fibonacci Expansion indicator is drawn upward.

These Fibo Expansion areas are shown as horizontal lines above the Fibonacci Expansion technical indicator, showing profit taking areas. In the cryptocurrency trading example illustrated below if you had used of 100.0% Fibo Expansion level you would have made a good profit from the trade set-up.

Drawing Fibo Expansion Indicator on an Upwards Bitcoin Trend - Fibo Expansion Trading Tool

From the above Fibonacci Expansion indicator example, the upward bitcoin trend continued & both 61.80% & 100.0% Fibonacci Expansion levels were all hit after which bitcoin price retraced again after getting to the 100.00% Fibo Expansion level.

Drawing Fib Expansion Areas on a Downwards BTCUSD Trend

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

We draw the Fibonacci Expansion technical indicator tool from chart point 1 to chart point 2 to chart point 3 as shown on the cryptocurrency trading example illustrated below. Remember we always draw this Fibonacci Expansion tool in direction of the cryptocurrency trend. In the Fibonacci Expansion 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 Fibonacci Expansion indicator above and how Fibonacci Expansion indicator is drawn below. This time you would also have used Fibonacci Expansion level 100.0%, just where the bitcoin price reached as shown on the cryptocurrency trading example illustrated below. That would have been a good take profit area.

Drawing Fibo Expansion Indicator on a Downwards Bitcoin Trend - Fibo Expansion Trading Tool

From the Fibonacci Expansion indicator example above, after plotting this Fibonacci Expansion tool there are two levels that are used to show the profit taking areas, these two Fibo Expansion levels are plotted as horizontal lines across the bitcoin trading price chart marked as 61.80% BTCUSD Fibo Expansion Level & 100% Fibo Expansion Level.