How Do You Draw Fibonacci Extensions on Downward Bitcoin Trend?
How Do I Trade Bitcoin and Draw Fibonacci Extensions on Downward Bitcoin Trend?
We draw the Fib Extension indicator tool from bitcoin chart point 1 to bitcoin chart point 2 to bitcoin chart point 3 as shown on the Fib extension bitcoin example illustrated below. Remember we always draw this Fibonacci Expansion tool in direction of the cryptocurrency trend. In the Fib Expansion example shown below, can you figure what is the direction which we've drawn it? That's right - downward direction.
As a trader you would also have used Fib Extension area 100.00%, just where the bitcoin price reached as illustrated on the Fib Expansion example illustrated below. That would have been a nice bitcoin crypto currency takeprofit level.
How Do I Draw Fib Extensions on Downward Trend?
From the Fibo Expansion tool examples above, after plotting this Fibonacci Extension indicator tool there are 2 levels that are used to show the bitcoin profit taking levels - these two Fibonacci Extension levels are represented as horizontal lines across the btcusd chart marked as 61.8% Bitcoin Fibo Extension Level & 100% Fibonacci Expansion Level.
Interpretation of How Do I Draw Fibonacci Extensions on Cryptocurrency Charts?
Bitcoin Crypto Currency traders Fibonacci Expansion levels to estimate where the bitcoin crypto price movement will reach to. There are 2 commonly used Fibo Extension areas: 61.80% Fibonacci Expansion Level and 100% Fib Expansion Levels - these fibonacci extension levels are used for setting bitcoin profit taking zones.
To draw Fibonacci Expansion levels on the btcusd cryptocurrency chart we wait til the btcusd crypto price retracement is complete and the btcusd crypto price starts to move in the original direction of the BTCUSD Crypto trend. Where the btcusd crypto price retracement reaches is used as btcusd crypto chart point 3. Fibonacci Expansion Technical Indicator is plotted using three bitcoin chart points as illustrated on the Fibonacci extension bitcoin example illustrated below of how to draw the Fibo Extension Indicator.
The Fib Expansion example illustrated below shows the three Chart Points where the Fibo Expansion technical indicator is drawn, labeled as Cryptocurrency point 1, Cryptocurrency point 2 and Cryptocurrency point 3.
Cryptocurrency Point 1 is where btcusd crypto trend started, Cryptocurrency Point 2 is where btcusd crypto price pulled back and retraced and Crypto Point 3 is where bitcoin retracement reached as shown on the Fib Expansion Technical Indicator example illustrated below.
How Do I Trade Crypto and Draw Fibonacci Extensions on Downward Trend?
Please note where these Fibonacci Expansion levels are plotted - Fibo Expansion levels are drawn above the Fibo bitcoin indicator, these are the bitcoin crypto chart levels where a btcusd trader will set the bitcoin crypto currency takeprofits using these Fibo Expansion Levels - 61.8% Fibonacci Expansion Level & 100.0% Fib Expansion Level.
How Do I Draw Fib Extensions on Downward Bitcoin Trend?
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