Fibonacci Expansion and 1-2-3 Pattern
Fibonacci Expansion is a very important tool in forex trading; a lot of Forex strategies are designed based on Fibonacci Expansion tool, check 1-2-3 pattern strategy, which called also ABCD formation.
There are few Forex platforms don't include this tool, but this exist in most platforms including the widely used platform MT4.
If you're familiar with Fibonacci Retracement then you know that you need to points to draw Fibonacci Retracements, but in Fibonacci Expansion you need three points, A, B and C.
If you're in a bearish trend, then the first point will be the heist high, second point is the lowest low and the third point is a lower high, which is the top of bull back wave.
If you're in a bullish trend then the first point will be the lowest low, second point is the heist high, and the third point is the higher low, which is the low of bull back wave.
Just click the tool then click the Point A in the chart and drag to point B, then double click the tool to get the ability to control Point C and drag it to the write point.
Buy using this tool, you'll get the potential targets for your trade, you can edit the build in Fibonacci number in the tool by right click the tool, then choose the first option "Expansion Properties" then choose the Fibo levels tab, then add the values you want to add to Fibonacci numbers.
There are few Forex platforms don't include this tool, but this exist in most platforms including the widely used platform MT4.
If you're familiar with Fibonacci Retracement then you know that you need to points to draw Fibonacci Retracements, but in Fibonacci Expansion you need three points, A, B and C.
If you're in a bearish trend, then the first point will be the heist high, second point is the lowest low and the third point is a lower high, which is the top of bull back wave.
If you're in a bullish trend then the first point will be the lowest low, second point is the heist high, and the third point is the higher low, which is the low of bull back wave.
Just click the tool then click the Point A in the chart and drag to point B, then double click the tool to get the ability to control Point C and drag it to the write point.
Buy using this tool, you'll get the potential targets for your trade, you can edit the build in Fibonacci number in the tool by right click the tool, then choose the first option "Expansion Properties" then choose the Fibo levels tab, then add the values you want to add to Fibonacci numbers.
posted by Abu Ali at
9:23 AM
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