How Do You Calculate Fibonacci Extension Levels? - Fibonacci Extension Indicator Levels Defined

To Calculate Fibo Extension levels on forex charts we use the Fib Extension Indicator

What are the Fibo Extension Levels?

• 61.8% Fibo Extension Level
• 100% Fibonacci Extension Level

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

To draw Fibo expansion we use 3 chart points.

To draw Fibonacci extension levels we wait until the forex price retracement is complete and 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 extension 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 shown on example below.

How Do You Calculate Fibonacci Extension Levels on Forex Charts?

The two Fibo extension levels 61.8% & 100% Fibonacci Extension levels were then drawn above the Fibonacci Extension Indicator as shown on example above.