How to Draw Fibonacci Expansion Indicator in Upwards Trend

How Do You Draw Fibonacci Expansion for Indices Uptrend?

We use Fib Expansion zones to gauge/estimate where the market trend move will reach. There are 2 oftenly used Fibonacci Expansion zones: 61.8% Stock Index Trade Fib Expansion Level & 100 % Fib Expansion Level, these Fib Expansions are used for setting take profit order levels.

On the Fib Expansion indicator example explained and illustrated and shown below you as a trader can see that the Fib Expansion indicator is plotted along the direction of the trend, since the trend is up - the Fibonacci Expansion indicator is drawn upward.

These Fib Expansion levels are shown as horizontal lines above the Fibonacci Expansion indicator, showing profit booking areas. In the example illustrated below if you had used the 100.00% Fibonacci Expansion zone you would have made good profit from this setup.

How to Draw Fib Expansions on Up Indices Trend - How Do I Draw Fibonacci Expansion in Up-wards Trend?

How Do I Draw Fibonacci Expansion on Up Indices Trend

From the above Fib Expansion technical indicator tool example illustration, the upward trend continued & both 61.8% and 100.00% Fib Expansion zones were all hit after which the price retraced again after getting to the 100.0% Fib Expansion zone.

From the Fibonacci Expansion technical indicator tool example illustration put on display above, after plotting this Fibo Expansion tool there are 2 levels that are used to display the profit booking areas, these 2 Fibonacci Expansion zones are plotted as horizontal lines across the trading chart labeled & marked as 61.8 % Stock Index Trade Fib Expansion Level and 100 % Fib Expansion Level.

Explanation of How to Draw Fib Expansions on Stock Indices Charts

We use Fibonacci Expansion zones to gauge/estimate where the trend move will reach. There are 2 important Fibo Expansion levels: 61.8% & 100% Fibonacci Expansions, these are used for taking profit.

To draw Fibonacci Expansion zones on the chart we wait until the price retracement is complete & price starts and begins to move in original direction of the Indices trend. Where the price retracement reaches and gets to is used as chart point 3. Fibo Expansion Indicator is plotted using three chart points like as displayed on the illustration explained below of how to plot the Fibonacci Expansion IndicatorTool.

The Fib Expansion examples illustrated below shows the Three Chart Points where the Fibonacci Expansion indicator is drawn, labeled as Chart point 1, Chart point two and Chart point 3.

Point 1 is where the market trend started, Point 2 is where the market trend pulled back & retraced and Chart point 3 is where the retracement reached just as is displayed on the Fibonacci Expansion Indicator Tool example illustration explained below.

How to Draw Fibonacci Expansion Areas Trading Indicator on Upwards Trend

How Do I Draw Fibonacci Expansion Indicator in Upwards Trend

Please take note where these Fib Expansion levels are drawn - Fibonacci Expansion levels are drawn above the Fib indicator, these are the chart points where a trader will place takeprofit orders using these Fib Expansions - 61.8% and 100.00% Fib Expansion Levels.

Study More Lessons and Topics:

Trade Stock Indices

How to Draw Fibonacci Expansion Indicator in Upwards Trend

How Do You Draw Fibonacci Expansion for Indices Uptrend?

Explanation of How to Draw Fib Expansions on Stock Indices Charts