61.8 Fibonacci Extension Level

We use Fibonacci extension levels to estimate where the forex trend price movement will reach. There are 2 important Fibonacci extension levels: 61.8% Fibonacci Extension Level and 100% Fibonacci Extension Level - these fibonacci extension levels are used for setting forex trading taking profit orders.

61.8% FX Trading Fib Extension Level

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

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

The Fibonacci extension example below shows the 3 Forex Chart Points where the Fibonacci extension indicator is drawn - marked as Forex Chart point 1, Forex Chart point 2 and Chart point 3.

Forex Chart point 1 is where the forex trend started, Chart point 2 is where the price pulled back & retraced - Forex Chart point 3 is where the price retracement reached as illustrated on the Fibonacci Extension Areas Indicator example shown below.

The First Fibonacci Extension Level is the 61.8 Fibonacci Extension Level shown on the Fibonacci Extension indicator example Below Used to Set Forex Take Profit Orders

How Do I Read 61.8% Fibonacci Extension Level?

Please note where these Fibonacci Extension areas are drawn on the forex chart - Fibonacci Extension zones are plotted above the Fibo Extension indicator - these are the chart points where a trader will place the forex take profit orders using these Fibo Extension Levels - 61.8% Fibonacci Extension Levels.

How Do I Read 61.8% Fibonacci Extension Level? - How Do I Analyze 61.8% Fibonacci Extension Level?