How Do I Read Fibonacci Retracement vs Fibonacci Expansion?
Stock Indices Trade Fibonacci Retracement vs Fibonacci Expansion
Fibonacci retracement is drawn between 2 chart points but Fibo expansion is drawn using 3 chart points.
Fibonacci Retracement Technical Indicator example explained and illustrated below - where the indices trend is moving downwards between Stock Indices Chart point 1 and Stock Indices Chart point 2 - then after Stock Indices Chart point 2 the stock indices price retraces then it continues moving up in the original upward stock indices trend. Note that this Fibonacci Retracement Technical Indicator is drawn from Stock Indices Chart point 1 to Stock Indices Chart point 2 in direction of the stock indices trend.
How Do I Read Fibonacci Retracement vs Fibo Expansion?
Stock Indices Trading Fib Expansion Levels
Fibonacci retracement stock indices indicator is drawn between 2 chart points but Fib expansion is drawn using Three chart points.
To draw these Fibonacci Expansion levels indices traders will wait until the stock indices price retracement is complete and the stock indices price starts to move in original direction of the stock indices trend. Where the stock indices price retracement reaches - this point is used as chart point 3 for Fibonacci expansion stock indices indicator.
The Fibonacci Expansion Indicator example explained and illustrated below shows the 3 chart points where the Fibonacci Expansion Indicator is drawn, marked as chart point 1, 2 and 3. Stock Indices Chart point 1 is where the indices trend started, Stock Indices Chart point 2 is where the stock indices price pulled back and retraced and Chart point 3 is where the stock indices price retracement reached as shown on the Fibonacci Expansion Indicator examples explained & illustrated below.
Stock Indices Trade Fibonacci Retracement vs Fibonacci Expansion?
Please note where these Fibonacci expansion levels are drawn - Fibonacci Expansion zones are plotted above the Fib Expansion Indicator - these are the points where a trader will set indices take profit orders.
How Do I Read Fibonacci Retracement vs Fibo Expansion?
