How Do I Analyze Fibo Extension Levels on Charts?
How Do You Trade Fibonacci Extension Levels on Charts?
To Calculate Fibo Expansion zones on charts we use the Fibo Expansion Indicator
What are the Fibonacci Extension Levels?
- 61.80% Fibo Expansion Level
- 100% Fib Expansion Level
We use Fibonacci expansion levels to try to project where price move will get to. There are two important fibonacci expansion levels: 61.80% & 100% Fib Expansion levels, these points are used for taking profit.
To draw Fibonacci expansion levels indicatorwe use 3 chart points.
To draw Fibonacci extension levels we wait until the price retracement is complete and the instrument begins heading in the original direction of trend. Where the price pull back gets-to is used as point 3.
The example below shows the 3 Chart Points where the Fibo expansion indicator is plotted, marked as chart point 1, 2 & 3. Chart point 1 is where price trend started, Chart point 2 is where price trend retraced & chart point 3 is where the price retracement reached as illustrated on the example below.
How Do I Analyze Fibo Extension Levels on Charts? - Fibo Expansion Indicator Guide
The two Fib expansion levels 61.8% and 100% Fibo Expansion zones were then drawn above the Fibo Expansion Indicator as shown on the example above.
How Do You Analyze Fibo Extension Levels on Charts?