Fibonacci Extension MetaTrader 4 Indicator Analysis
Take Profit Order Level Trading Calculator
We use Fibonacci Expansion Levels to project where the market trend move will get to. 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 to move in original direction of the trend. Where the price retracement reaches is used as chart point 3. Fib Extension MetaTrader 4 Indicator is plotted using three chart points as displayed on the examples explained below of how to plot the Fib Expansion Technical Indicator MT4 Tool.
The Fibonacci Extension MetaTrader 4 Indicator examples explained below shows the Three Chart Points where the Fib Extension MT4 stocks technical 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 Meta Trader 4 Indicator Tool example described below.
Fib Extension Stock Indices Trading MT4 Indicator - Fibo Extension Calculation
Fibonacci Extension Stock Index Trading MT4 Indicator - Fibonacci Expansion Calculation
Please take note where these Fib Expansion levels are drawn - Fibonacci 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 % and 100.00 % Fib Expansion Areas.
Stock Indices Fibonacci Expansion Calculator
We use Fib Expansion Levels to project where the trend move will get to. There are Two important Fibonacci Expansion levels: 61.8% Stock Indices Trading Fibo Expansion Level & 100 % Fib Expansion Level, these Fibonacci Expansion Levels are used for taking profit.
On the Fib Extension MetaTrader 4 indicator example explained & illustrated below you can see that the Fib Extension Meta Trader 4 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 taking areas. In the example 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 Trading MetaTrader 4 Indicator - Fibo Expansion Calculation
Fibonacci Extension Stock Index Trading 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 price retraced again after getting to the 100.0% Fib Expansion zone.
Stock Indices Fibonacci Expansion Calculator
Since we use the Fib Extension Meta Trader 4 stocks indicator tool to estimate takeprofit areas, how do we draw MT4 Fib Extension in a downward trend?
We draw the Fib Extension Meta Trader 4 stocks indicator tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the example explained below. Remember we always draw this Fib Extension Meta Trader 4 stocks indicator tool in the direction of the market 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 on the example described below. That would have been a nice level for profit taking.
Fib Expansion Indices Trading MetaTrader 4 Indicator - Fibo Expansion Calculation
Fibonacci Extension Stock Index Trading MT4 Indicator - Fib Expansion Calculation
From the Fibonacci Extension MT4 trading indicator examples above, after plotting this Meta Trader 4 Fib Extension tool there are 2 levels which are used to show the profit taking areas, these 2 Fib Expansion levels are drawn as horizontal lines across the price chart marked as 61.8 % Stock Indices Trading Fibo Extension Level & 100 % Fibonacci Expansion Level.
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