How Do You Interpret Fibo Extension Levels on Bitcoin Charts?
Bitcoin Trade Fibo Extension Levels on Bitcoin Charts
To Calculate Fib Expansion levels on charts we use the Fibo Expansion Technical Indicator
What are the Fibo Expansion Levels in Bitcoin Trading?
- 61.80% Fib Expansion Level
- 100% Fibo Extension Level
We use Fibonacci extension levels to estimate where the bitcoin price move will reach. There are two important fibonacci extension levels in bitcoin trading; 61.8% and 100% Fib Expansion areas, these points are used for taking profit.
To draw Fibonacci extension levels bitcoin crypto indicatorwe use 3 bitcoin chart points.
To draw Fibonacci extension levels on the charts we wait until the bitcoin price retracement is complete & the instrument begins to move in the original direction of the Bitcoin trend. Where the bitcoin price retracement reaches is used as point 3.
The Fibonacci extension cryptocurrency indicator example illustrated below shows the 3 Bitcoin Chart Points where the Fibo extension bitcoin indicator is drawn, marked as cryptocurrency chart point 1, 2 & 3. Bitcoin Crypto Point 1 is where bitcoin price trend started, BTCUSD Crypto Point 2 is where bitcoin price trend retraced and cryptocurrency chart point 3 is where the bitcoin price retracement reached as illustrated on the cryptocurrency example illustrated below.
Fibo Extension Bitcoin Technical Indicator Explained
The two Fib extension levels 61.8% & 100% Fibo Extension areas were then drawn on the cryptocurrency chart above the Fibo Expansion Technical Indicator as shown on the Fibonacci extension cryptocurrency indicator above example.
How Do I Read Fibo Extension Levels on Bitcoin Charts
Learn More Lessons & Tutorials:
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