How to Draw Fibonacci Projection on Down Bitcoin Trend

Trading Cryptocurrency Draw Fibonacci Projection for Bitcoin Downtrend

We draw the Fibonacci Projection tool from chart point 1 to chart point 2 to chart point Three as shown on the cryptocurrency trading example illustrated below. Remember we always draw this Fibonacci Projection tool in direction of the cryptocurrency trend. In the Fibonacci Projection 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 Projection level 100.0%, just where the bitcoin price reached as shown on the Fibonacci Projection example illustrated below. That would have been a good take profit area.

How to Draw Crypto Fibonacci Projection on Downwards Crypto Trend

From the Fibonacci Projection technical indicator tool example above, after plotting this Fibonacci Projection technical indicator tool there are two levels that are used to show the profit taking levels, these two Fibonacci Projection areas are drawn as horizontal lines across the cryptocurrency chart marked as 61.80%Fibo Projection Level & 100% Fibo Projection Level.

Explanation of How to Draw Fib Projection Levels on Crypto Charts

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

To draw Fib Projection 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 Projection Indicator tool is drawn using three chart points as shown on the cryptocurrency trading example illustrated below of how to draw the Fibonacci Projection Technical Indicator Tool.

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

How to Draw Fib Projection Crypto Technical Indicator Tool on Downwards Crypto Trend

Please note where these Fibonacci Projection areas are drawn - Fib Projection levels are drawn above the Fibo indicator, these are the chart points where a trader will set the takeprofit orders using these Fibonacci Projection Levels - 61.8% Fibonacci Projection Level and 100.0% Fibonacci Projection Level.