How to Draw Fib Expansion Technical Indicator on Upwards Trend

How Do You Draw Fib Expansion for Indices Uptrend?

We use Fib Expansion zones to gauge/estimate where the market trend move will reach. There are 2 oftenly used Fib Expansion zones: 61.8% Stock Indices Trade Fib Expansion Level and 100 % Fib Expansion Level, these Fib Expansions are used for setting take profit order levels.

On the Fib Expansion indicator example explained & illustrated and shown below you as a trader can see that the Fib Expansion indicator is plotted along the direction of the trend, since the trend is up - the Fib Expansion indicator is drawn upward.

These Fib Expansion levels are shown as horizontal lines above the Fib Expansion technical indicator, showing profit booking areas. In the example illustrated below if you had used the 100.00% Fib Expansion zone you would have made good profit from this setup.

How to Draw Fib Expansions on Up Indices Trend - How Do I Draw Fib Expansion on Up-wards Trend?

How Do I Draw Fibonacci Expansion on Up Indices Trend

From the above Fib Expansion technical indicator tool example illustration, the upwards trend continued & both 61.8% and 100.00% Fib Expansion zones were all hit after which the price retraced again after getting to the 100.0% Fib Expansion zone.

From the Fib Expansion technical indicator tool example illustration put on display above, after plotting this Fib Expansion tool there are 2 levels that are used to display the profit booking areas, these 2 Fib Expansion zones are plotted as horizontal lines across the trading chart labeled & marked as 61.8 % Stock Indices Trade Fib Expansion Level & 100 % Fib Expansion Level.

Explanation of How to Draw Fib Expansions on Stock Indices Charts

We use Fib Expansion zones to gauge/estimate where the trend move will reach. There are 2 important Fib Expansion levels: 61.8% & 100% Fib Expansions, these are used for taking profit.

To draw Fib Expansion zones on the chart we wait until the price retracement is complete & price starts and begins to move in original direction of the Indices trend. Where the price retracement reaches and gets to is used as chart point 3. Fib Expansion Technical Indicator is plotted using three chart points as displayed on the illustration explained below of how to plot the Fib Expansion IndicatorTool.

The Fib Expansion examples illustrated below shows the Three Chart Points where the Fib Expansion indicator is drawn, labeled as Chart point 1, Chart point two and Chart point 3.

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

How to Draw Fibonacci Expansion Areas Trading Indicator on Upwards Trend

How Do I Draw Fibonacci Expansion Technical Indicator on Upwards Trend

Please take note where these Fib Expansion levels are drawn - Fib Expansion levels are drawn above the Fib indicator, these are the chart points where a trader will place takeprofit orders using these Fib Expansions - 61.8% and 100.00% Fib Expansion Levels.

Study More Tutorials and Topics:

Trade Stock Indices

How to Draw Fib Expansion Technical Indicator on Upwards Trend

How Do You Draw Fib Expansion for Indices Uptrend?

Explanation of How to Draw Fib Expansions on Stock Indices Charts