Fib Extension MT4 Indicator Analysis
Take Profit Order Level Trading Calculator
We use Fib Expansion Levels to project where the market trend move will reach. There are Two important Fib Expansion levels: 61.80 % & 100 % Fib Expansion Levels, these are used for taking profit.
To draw Fibo Extension levels on the MT4 stocks chart we wait until the price retracement is complete & stocks trading price starts and begins to move in original direction of the trend. Where the price retracement reaches and gets to is used as chart point 3. Fib Extension MT4 Indicator is plotted using three chart points as displayed on the illustrations expounded below of how to plot the Fib Expansion Technical Indicator MT4 Tool.
The Fib Extension MT4 Indicator examples expounded below shows the Three Chart Points where the Fib Extension MT4 stocks indicator is drawn, labeled as Chart point 1, Chart point two & Chart point 3.
Point 1 is where the trend started, Point 2 is where the market trend pulled back & retraced & Chart point 3 is where the retracement reached as displayed on the Fib Extension MT4 Indicator Tool example illustration described below.
Fib Extension Stock Indices Trade MT4 Indicator - Fibo Extension Calculation
Fib Extension Stock Index Trade MT4 Indicator - Fib Expansion Calculation
Please take note where these Fib Expansion levels are drawn - Fib Expansion levels are plotted above the MT4 Fib indicator, these are chart points where one will set take-profits using these Fib Expansion Levels - 61.8 % & 100.00 % Fib Expansion Areas.
Stock Indices Fib Expansion Calculator
We use Fib Expansion Levels to project where the trend move will reach. There are Two important Fib Expansion levels: 61.8% Indices Trade Fibo Expansion Level & 100 % Fib Expansion Level, these Fib Expansion Levels are used for taking profit.
On the Fib Extension MT4 indicator example explained & illustrated below you as a trader can see that the Fib Extension MT4 stocks indicator is plotted along the direction of the trend, since the trend is upwards - the MetaTrader 4 Fib Extension indicator is drawn upward.
These Fib Expansion levels are shown as horizontal lines above the Fib Extension MT4 indicator, showing profit booking areas. In the illustration explained below if you had used the 100.00% Fibo Extension level the you would have made good profit from the trade set-up.
Fib Expansion Indices Trade MetaTrader 4 Indicator - Fibo Expansion Calculation
Fib Extension Stock Index Trade MT4 Indicator - Fib Expansion Calculation
From above Fib Extension MT4 indicator example, upward trend continued & both 61.8% and 100.0 % Fib Extension levels were all hit after which the price retraced again after getting to the 100.0% Fib Expansion zone.
Stock Indices Fib Expansion Calculator
Since we use the Fib Extension MT4 stocks tool to gauge/estimate takeprofit areas, how do we draw MT4 Fib Extension in a downward trend?
We draw the Fib Extension MT4 stocks tool from chart point 1 to chart point 2 to chart point 3 as illustrated and shown on the illustration explained below. Remember we always draw this Fib Extension MT4 stocks tool in the direction of the market price trend. In the Fib Expansion example explained and shown below, can you figure what is the direction which we've drawn it? That's right - downward direction.
Try & identify the difference between how we have drawn Fibo Extension technical indicator above & how Fib Extension indicator is drawn below. This time you would also have used Fibo Expansion zone 100.00%, just where the price reached as illustrated and shown on the illustration described below. That would have been a good area for profit booking.
Fib Expansion Indices Trade MetaTrader 4 Indicator - Fibo Expansion Calculation
Fib Extension Stock Index Trade MT4 Indicator - Fib Expansion Calculation
From the Fib Extension MT4 trading indicator examples above, after plotting this MetaTrader 4 Fib Extension tool there are 2 levels which are used to display the profit booking areas, these 2 Fib Expansion levels are drawn as horizontal lines across the price chart labeled and marked as 61.8 % Indices Trade Fibo Extension Level & 100 % Fib Expansion Level.
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