How to Draw Fibonacci Extension on Up Bitcoin Trend
How Do You Draw Fibonacci Extension for Bitcoin Uptrend?
We use Fibonacci Extension Levels to try to project where the btcusd crypto trend movement will get to. There are two commonly used Fib Extension areas: 61.80 % BTCUSD Fib Extension Level and 100 % Fibo Extension Level, these Fibo Expansion Levels are used for setting take profit areas.
On the Fibo Extension example illustrated below you can see that the Fibo Extension indicator tool is plotted along the direction of the btcusd crypto trend, since the bitcoin trend is up - the Fibo Extension indicator is plotted upward.
These Fib Extension levels are shown as horizontal lines above the Fibo Extension indicator, showing the taking profit zones. In the example illustrated below if you had used of 100.0% Fibonacci Extension level you would have made good profit from using this trade setup.
How Do I Draw Fibo Extension on Up Crypto Trend
From the above Fibo Extension example, the upwards bitcoin trend continued and both 61.80% and 100.0 % Fibonacci Extension levels were all hit after which the bitcoin price retraced again after getting to the 100.00% Fibonacci Extension area.
From the Fib Extension tool examples above, after drawing this Fibo Extension tool there are two levels that are used to show the taking profit zones, these two Fibo Extension areas are plotted as horizontal lines across the chart marked as 61.8% BTCUSD Fibo Extension Level and 100 % Fibonacci Extension Level.
Explanation of How to Draw Fib Extension Levels on Charts
We use Fibonacci Extension Levels to try to project where the btcusd crypto trend movement will get to. There are Two crucial Fib Extension areas: 61.80% and 100 % Fib Extension Areas, these are used for taking profit.
To draw Fib Extension levels on the chart we wait until the bitcoin crypto currency price retracement is complete & the btcusd crypto price starts to move in the original direction of the BTCUSD Crypto trend. Where the btcusd crypto price pullback gets-to is used as point 3. Fibonacci Extension Indicator is plotted using 3 chart points as illustrated on the example illustrated below of how to draw the Fibo Extension Technical IndicatorTool.
The Fibo Extension example illustrated below shows the 3 Chart Points where the Fibo Extension indicator is plotted, labeled as Point 1, Chart point two & Chart point 3.
Point 1 is where btcusd crypto trend started, Point 2 is where btcusd crypto currency trend pulled back and retraced and Chart point 3 is where the retracement reached as shown on the Fibo Extension Indicator Tool example illustrated below.
How Do I Draw Fibo Extension Crypto Technical Tool on Up-wards Crypto Trend
Please note where these Fibo Extension areas are plotted - Fibonacci Extension levels are drawn above the Fibo indicator, these are the chart areas where a trader will set the takeprofit orders using these Fib Expansion Levels - 61.80 % and 100.00 % Fibonacci Extension Areas.
