How to Draw Fibonacci Expansion on Down Bitcoin Trend
How Do You Draw Fibonacci Retracement Expansion for Bitcoin Downtrend?
We draw the Fib Expansion indicator tool from chart point 1 to chart point 2 to chart point 3 as shown on the example illustrated below. Remember we always draw this Fib Expansion tool in direction of the trend. In the Fib Expansion example illustrated below, can you figure what is the direction which we have drawn it? That's right - downwards direction.
As a trader you'd also have used Fibo Expansion level 100.0 %, just where the bitcoin price reached as shown on the Fibo Expansion example illustrated below. That would have been a good takeprofit zone.
How to Draw Fib Expansion on Down Crypto Trend
From the Fibo Expansion tool examples above, after drawing this Fibonacci Expansion indicator tool there are two levels that are used to show the profit taking levels, these two Fib Expansion levels are plotted as horizontal lines across the chart marked as 61.8% Bitcoin Crypto Currency Fib Expansion Level & 100% Fib Expansion Level.
Explanation of How to Draw Fib Expansions on Crypto Charts
We use Fibo Expansion areas to try to estimate where btcusd crypto trend movement will get to. There are two commonly used Fibo Expansion areas: 61.8% Fib Expansion Level and 100% Fibo Expansion Areas, these are used for setting taking profit areas.
To draw Fibonacci Expansion levels on the chart we wait til the btcusd crypto price retracement is complete & the bitcoin crypto currency price starts to move in the original direction of the Bitcoin Crypto Currency trend. Where the bitcoin price pull back gets-to is used as chart point 3. Fibo Expansion tool is drawn using three chart points as shown on the example illustrated below of how to draw the Fibo Expansion Technical IndicatorTool.
The Fibo Expansion example illustrated below shows the 3 Chart Points where the Fibo Expansion indicator is plotted, marked as Chart point 1, Chart point two and Chart point 3.
Chart point 1 is where bitcoin crypto currency trend started, Chart point 2 is where bitcoin crypto currency trend pulled back & retraced and Chart point 3 is where the retracement reached as shown on the Fib Expansion Indicator Tool example illustrated below.
How to Draw Fib Expansion Crypto Technical Tool on Downward Crypto Trend
Please note where these Fibo Expansion levels are plotted - Fib Expansion levels are drawn above the Fib indicator, these are the chart levels where a trader will set the takeprofit orders using these Fibo Extension Levels - 61.8% Fibo Expansion Level & 100.0% Fibo Expansion Level.
