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What's the Difference between Crypto Fibo Retracement and Fibonacci Extension?

How to use Fibo Retracement & Extension and the Difference between Fib Retracement and Extension

BTCUSD Fibonacci Retracement Areas

Fib retracement is drawn between two chart points but Fib extension is drawn using 3 points.

Fibonacci Retracement Level example illustrated below where the bitcoin trend is moving downward between Chart point 1 & Chart point 2, then after the Point 2 the bitcoin crypto currency price retraces then it continues heading upwards in the original upward trend. Note that this Fib Retracement Levels technical indicator is drawn from Chart point 1 to point 2 in direction of the market trend.

Fibonacci Retracement Levels - What is the Difference between Fibo Retracement and Fib Expansion Levels?

Fib Retracement Levels - How to Draw Fib Retracement Levels

Fibonacci Expansion Levels

Fibonacci retracement is drawn between two chart points but Fibo expansion is drawn using 3 chart points.

To draw these Fibonacci Extension levels we wait til the bitcoin price retracement is complete & the bitcoin price starts to move in the original direction of the Bitcoin trend. Where the retracement reaches is used as chart point 3 for Fibonacci extension.

The Fibo Expansion example illustrated below shows the 3 chart Points where the Fibonacci Expansion technical indicator is drawn, labeled as chart point 1, 2 & 3. Point 1 is where the bitcoin crypto currency trend started, Point 2 is where the bitcoin crypto currency trend pulled back and retraced and Chart point 3 is where the retracement reached as shown on Fibo Extension example illustrated below.

Fib Extensions - What is the Difference between Fibo Retracement Levels and Fibonacci Extension?

Fibo Expansion Levels - How to Draw Fibonacci Expansion Levels

Please note where these Fibonacci Expansion levels are plotted - Fibo Expansion levels are drawn above the Fibo Extension technical indicator, these are the points where a bitcoin trader will set the take profit orders.

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