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