How to Draw Fibonacci Expansion on Up Bitcoin Trend
How Do I Draw Fibonacci Expansion for Bitcoin Uptrend?
We use Fibonacci Expansion levels to estimate where the bitcoin trend movement will reach. There are 2 oftenly used Fibonacci Expansion areas: 61.8% BTCUSD Trading Fib Expansion Level & 100% Fibonacci Expansion Level, these Fibonacci Expansion Levels are used for setting take profit areas.
On the Fibonacci Expansion indicator example illustrated below you can see that the Fibonacci Expansion technical indicator is plotted along the direction of the bitcoin trend, since the bitcoin trend is up - the Fibonacci Expansion indicator is drawn upwards.
These Fibonacci Expansion areas are shown as horizontal lines above the Fibonacci Expansion 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 nice profit from the trade set-up.
How to Draw Fib Expansion on Up Crypto Trend
From the above Fibonacci Expansion indicator tool example, the upward bitcoin trend continued & both 61.80% & 100.0% Fibonacci Expansion levels were all hit after which the bitcoin price retraced again after getting to the 100.0% Fibonacci Expansion level.
From the Fibo Expansion tool examples 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 cryptocurrency chart marked as 61.8% BTCUSD Fibo Expansion Level & 100% Fibo Expansion Level.
Explanation of How to Draw Fibonacci Expansion Levels on Cryptocurrency Charts
We use Fibonacci Expansion levels to estimate where the bitcoin trend movement will reach. There are 2 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 & the bitcoin price starts to move in the original direction of the Bitcoin trend. Where the bitcoin 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 Fib Expansion Technical Indicator Tool.
The Fibonacci Expansion example illustrated below shows the 3 Chart Points where the Fibonacci Expansion 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 Upwards Crypto Trend
Please note where these Fib Expansion levels are plotted - Fibo Expansion levels are plotted above the Fib indicator, these are the chart points where a trader will place the takeprofit orders using these Fib Expansion Levels - 61.80% & 100.00% Fibo Expansion Areas.
