How Do You Calculate Fibonacci Expansion Levels on Forex Charts Explained?

To Calculate Fibonacci Expansion levels on forex charts we use the Fibo Expansion Indicator

What are the Fibo Expansion Levels?

• 61.80% Fibonacci Expansion Level
• 100% Fibonacci Expansion Level

We use Fibonacci expansion levels to estimate where the price movement will reach. There are 2 important fibonacci expansion levels: 61.8% and 100% Fibonacci Expansion levels, these level are used for taking profit.

To draw Fibonacci expansion we use 3 chart points.

To draw Fibonacci expansion levels we wait until the forex price retracement is complete & the currency pair starts to move in the original direction of the Forex trend. Where the retracement reaches is used as point 3.

The example below shows the 3 Chart Points where the Fibonacci expansion indicator is drawn, marked as chart point 1, 2 and 3. Chart point 1 is where the price trend started, Chart point 2 is where the price trend retraced and chart point 3 is where the price retracement reached as illustrated on the example below.

How Do You Calculate Fibonacci Expansion Levels on Forex Charts?

The two Fibo expansion levels 61.8% and 100% Fibonacci Expansion levels were then drawn above the Fibonacci Expansion Indicator as shown on example above.