How to Draw Fibonacci Expansion Levels on Upward Indices Trend

How Do I Trade Indices and Draw Fibonacci Expansion Levels on Upward Indices Trend?

We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 oftenly used Fibonacci Expansion levels: 61.8% Stock Indices Trading Fibo Expansion Level and 100% Fibonacci Expansion Level, these Fibonacci Expansion Levels are used for setting indices take profit levels.

On the Fibonacci Expansion Indicator example explained and illustrated below you can see that the Fibonacci Expansion Indicator tool is drawn along the direction of the trend, since the trend is up - the Fibonacci Expansion Indicator is drawn upwards.

These Fibonacci Expansion levels are shown as horizontal lines above the Fibonacci Expansion Indicator, showing indices profit taking areas. In the stock indices example illustrated below if you had used the 100.00% Fibonacci Expansion level you would have made good profit from this setup.

How to Draw Fib Expansion Levels on Upward Indices Trend?

From the above Fibonacci Expansion Indicator tool example, the upward trend continued and both 61.8% and 100.00% Fibonacci Expansion levels were all hit after which the stock indices price retraced again after getting to the 100.00% Fibonacci Expansion level.

From the Fibonacci Expansion Indicator tool example above, after plotting this Fibonacci Expansion tool there are 2 levels that are used to show the indices profit taking areas, these two Fibonacci Expansion zones are plotted as horizontal lines across the stock indices chart marked as 61.8% Stock Indices Trading Fibo Expansion Level and 100% Fibonacci Expansion Level.

Explanation of How Do I Draw Fibonacci Expansion Levels on Stock Indices Charts?

We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 important Fib Expansion levels: 61.8% & 100% Fibonacci Expansion Levels, these are used for taking profit.

To draw Fibonacci Expansion levels on the stock indices chart we wait until the stock indices price retracement is complete and the stock indices price starts to move in original direction of the Indices trend. Where the stock indices price retracement reaches is used as chart point 3. Fibonacci Expansion Indices Indicator is plotted using three chart points as illustrated on the Fib expansion stock indices example explained below of how to plot the Fib Expansion Technical Indicator Tool.

The Fibonacci Expansion example explained and illustrated below shows the 3 Stock Indices Chart Points where the Fib Expansion Indicator is drawn, marked as Stock Indices Chart point 1, Stock Indices Chart point 2 & Stock Indices Chart point 3.

Stock Indices Chart point 1 is where the indices trend started, Stock Indices Chart point 2 is where the indices trend pulled back & retraced and Stock Indices Chart point 3 is where the indices retracement reached as displayed on the Fib Expansion Indicator Tool example explained below.

How Do You Trade Indices and Draw Fibonacci Expansion Levels on Upward Indices Trend?

Please note where these Fib Expansion zones are plotted - Fibonacci Expansion zones are plotted above the Fib stock indices indicator, these are the stock chart points where a trader will place the indices take profit orders using these Fib Expansion Levels - 61.8% and 100.0% Fibonacci Expansion Levels.

How to Draw Fib Expansion Levels on Upward Indices Trend