How to Draw Fibonacci Expansion on Down Bitcoin Trend

How Do I Draw Fibonacci Retracement Expansion for Bitcoin Downtrend?

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.

As a trader you would also have used Fibonacci Expansion level 100.0%, just where the bitcoin price reached as shown on the Fibonacci Expansion example illustrated below. That would have been a good take profit area.

How to Draw Fib Expansion on Down Crypto Trend

From the Fibo Expansion tool examples above, after plotting this Fibonacci Expansion indicator tool there are two levels that are used to show the profit taking levels, these two Fibo Expansion levels are plotted as horizontal lines across the cryptocurrency chart marked as 61.8% Bitcoin Trading Fibonacci Expansion Level & 100% Fibo Expansion Level.

Explanation of How to Draw Fib Expansion Levels on Crypto Charts

We use Fibonacci Expansion levels to estimate where the bitcoin trend movement will reach. There are 2 commonly used Fibonacci Expansion areas: 61.8% Fibonacci Expansion Level and 100% Fibonacci Expansion Areas, these are used for setting taking profit areas.

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. Fibonacci Expansion Indicator tool is drawn using three 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 Draw Fib Expansion Crypto Technical Indicator Tool on Downwards Crypto Trend

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 - 61.8% Fibonacci Expansion Level and 100.0% Fibo Expansion Level.