Fib Extension Indicator Tutorial
We use Fibonacci Extension Areas to estimate where the market trend movement will reach. There are two important Fibonacci Extension areas: 61.80% and 100% Fibonacci Extensions, these are used for taking profit.
To draw Fibo Extension levels on the MetaTrader 4 stock indices chart we wait until the stock indices price retracement is complete & the stock indices price starts to move in original direction of the Indices trend. Where the stock indices price retracement reaches is used as chart point 3. Fib Extension Meta Trader 4 Indicator is plotted using three chart points as illustrated on the stock indices trading examples explained below of how to plot the Fibo Extension Indicator MT4 Tool.
The Fib Extension Meta Trader 4 Indicator example explained below shows the Three Chart Points where the Fibonacci Extension MT4 indicator is plotted, marked as Chart point 1, Chart point two and Chart point 3.
Chart point 1 is where the indices trend started, Chart point 2 is where the indices trend pulled back and retraced and Chart point 3 is where the stock indices retracement reached as displayed on the Fib Extension Meta Trader 4 Indicator Tool examples explained below.
Fibonacci Extension Stock Indices Indicator Guide - Fibonacci Extensions Lesson
Fibonacci Extension Stock Indices Indicator Guide - Fibonacci Extensions Lesson
Please note where these Fibonacci Extension areas are plotted - Fibo Extension zones are drawn above the MetaTrader 4 Fibonacci indicator, these are the chart points where one will set takeprofit orders using these Fib Extension Levels - 61.80% and 100.00% Fibonacci Extension Areas.
Upward Indices Trend - Fib Extension Indices Trading Lesson - Fibo Extension Stock Indices Indicator Guide - Fibonacci Extensions Tutorial
We use Fibonacci Extension Areas to estimate where the market trend movement will reach. There are two important Fib Extension areas: 61.80% Stock Indices Fibonacci Extension Level & 100 % Fibonacci Extension Level, these Fib Extension Levels are used for taking profit.
On the Fibonacci Extension MetaTrader 4 indicator example explained and illustrated below you can see that the Fib Extension Meta Trader 4 stock indicator tool is plotted along the direction of the trend, since the trend is upward - the MetaTrader 4 Fibonacci Extension indicator is plotted upwards.
These Fibonacci Extension levels are displayed as horizontal lines above the Fib Extension MetaTrader 4 technical indicator, showing profit taking areas. In the stock indices examples explained below if you had used the 100.00% Fib Extension level the you would have made good profit from the trade set-up.
Fibonacci Extension Stock Indices Indicator Guide - Fibonacci Extensions Lesson
Fib Extension Indices Tutorial - Fibonacci Extension Stock Indices Indicator Guide
From the above Fib Extension MT4 indicator example, upward trend continued and both 61.8% & 100.00% Fibo Extension levels were all hit after which stock indices price retraced again after getting to the 100.0% Fibo Extension level.
Fibonacci Extension Stock Indices Indicator Guide
Since we use the Fib Extension Meta Trader 4 stock indicator tool to estimate take profit levels, how do we draw MT4 Fibonacci Extension in a downward Indices trend?
We draw the Fib Extension Meta Trader 4 stock tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the stock indices trading examples explained below. Remember we always draw this Fib Extension Meta Trader 4 stock indicator tool in direction of the market trend. In the Fibonacci Extension example explained and illustrated below, can you figure what's the direction which we have plotted it? That's right - downward direction.
Try and identify the difference between how we have drawn Fibo Extension indicator above and how Fibo Extension indicator is plotted below. This time you would also have used Fib Extension zone 100.00 %, just where the stock indices price reached as illustrated on the stock indices example explained below. That would have been a good level for profit taking.
Fibonacci Extension Stock Indices Indicator Guide - Fibonacci Extensions Lesson
Fibonacci Extension Stock Indices Guide - Fib Extension Indicator Guide
From the Fib Extension Meta Trader 4 technical indicator examples above, after plotting this Meta Trader 4 Fibo Extension tool there are two levels that are used to show the profit taking areas, these 2 Fibo Extension levels are plotted as horizontal lines across the stock indices price chart marked as 61.8 % Indices Fibo Extension Level and 100% Fibonacci Extension Level.