61.8 Fib Extension Level - How to Analyze 61.8 Fibonacci Extension Level

We useFibonacci Extension levels to estimate where the trend movement will reach. There are 2 important Fibo Extension areas: 61.8% & 100% Fibonacci Extension Levels, these are used for taking profit.

61.8 Fib Extension Level - 61.8% Fibonacci Extension Level

61.8 Fib Extension Level is the most commonly used forex profit taking level when trading using the Fib Extension Technical Indicator.

To draw Fibonacci Extension levels on the forex chart we wait until the price retracement is complete & the price starts to move in original direction of the Forex trend. Where the price retracement reaches is used as chart point 3. Fibonacci Extension Indicator is drawn using 3 chart points as illustrated on the example below of how to draw the Fibo Extension Technical Indicator Tool.

The Fibonacci Extension example below shows the 3 Chart Points where the Fibo Extension technical indicator is plotted, marked as Chart point 1, Chart point 2 & Chart point 3.

Chart point 1 is where the forex trend started, Chart point 2 is where the forex trend pulled back and retraced & Chart point 3 is where the forex retracement reached as displayed on the Fibonacci Extension Technical Indicator Tool example below.

The First Fibonacci Extension Level is the 61.8 Fibo Extension Level shown Below Used to Set Take Profit Orders

Fibonacci Extension Level is the 61.8 Fibo Extension Level shown Below Used to Set Take Profit Orders

Please note where these Fibo Extension levels are plotted - Fibonacci Extension zones are plotted above the Fibo indicator, these are chart points where one will set takeprofit orders using these Fibonacci Extension Levels - 61.8% Fibo Extension Levels.