How Do I Draw Fibo Extension Levels on Downward Bitcoin Trend?

How Do I Trade Bitcoin and Draw Fibo Extension Levels on Downward Bitcoin Trend?

We draw the Fibo Expansion Technical Indicator tool from bitcoin chart point 1 to bitcoin chart point 2 to bitcoin chart point 3 as shown on the Fib expansion cryptocurrency trading example illustrated below. Remember we always draw this Fib Expansion tool in direction of the cryptocurrency trend. In the Fib Expansion example illustrated below, can you figure what is the direction which we've drawn it? That's right - downwards direction.

As a trader you'd also have used Fib Expansion level 100.0 %, just where the bitcoin price reached as illustrated on the Fibo Extension example illustrated below. That would have been a nice btcusd crypto take profit order level.

How Do I Draw Fibo Expansion on Downward Bitcoin Trend?

How Do I Draw Fibo Extension Levels on Downward Trend?

From the Fib Expansion Technical Indicator tool example above, after drawing this Fib Expansion Technical Indicator tool there are two levels that are used to show the bitcoin profit taking levels - these two Fibo Expansion levels are represented as horizontal lines across the cryptocurrency chart marked as 61.8 percent BTCUSD Fibo Expansion Level & 100% Fibo Extension Level.

Interpretation of How Do I Draw Fibo Extension Levels on Cryptocurrency Charts?

BTCUSD Crypto traders Fibonacci Expansion areas to estimate where the bitcoin crypto currency price movement will reach to. There are two commonly used Fib Expansion areas: 61.8% Fib Expansion Level and 100% Fibonacci Expansion Levels - these fibonacci expansion levels are used for setting bitcoin profit taking zones.

To draw Fibonacci Expansion levels on the cryptocurrency chart we wait til the bitcoin price retracement is complete and the bitcoin price starts to move in the original direction of the Bitcoin trend. Where the bitcoin crypto currency price retracement reaches is used as bitcoin crypto currency chart point 3. Fib Expansion Bitcoin tool is drawn using three bitcoin chart points as illustrated on the Fibonacci expansion cryptocurrency trading example illustrated below of how to draw the Fibo Expansion Technical IndicatorTool.

The Fibo Extension example illustrated below illustrates the 3 Points where the Fibo Extension Technical Indicator is drawn, labeled as Crypto Chart point 1, Crypto Chart point 2 and Crypto point 3.

Cryptocurrency Point 1 is where btcusd crypto trend started, Crypto Point 2 is where btcusd crypto price pulled back & retraced & Cryptocurrency Point 3 is where bitcoin retracement reached as illustrated on the Fibonacci Expansion Technical Indicator Tool example illustrated below.

How to Trade Bitcoin and Draw Fibo Expansion on Downward Bitcoin Trend

How Do I Trade Crypto and Draw Fibo Extension Levels on Downward Trend?

Please note where these Fib Expansion levels are drawn - Fibo Extension levels are drawn above the Fibonacci indicator, these are the btcusd cryptocurrency chart levels where a btc usd trader will set the bitcoin crypto currency take profit orders using these Fibo Extension Levels - 61.8% Fibonacci Expansion Level and 100.0% Fib Expansion Level.

How Do I Draw Fibo Expansion Levels on Downward Bitcoin Trend?

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How Do I Draw Fibo Extension Levels on Downward Bitcoin Trend?

How Do I Trade Bitcoin and Draw Fibo Extension Levels on Downward Bitcoin Trend?

Interpretation of How Do I Draw Fibo Extension Levels on Cryptocurrency Charts?