61.8 Fib Extension Level

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

61.8% Fibo Extension Level

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

To draw Fibonacci Extension levels on the chart we wait until the price retracement is complete and price begins heading in original direction of trend. Where the price pull back gets-to is used as point 3. Fib Extension Indicator is plotted using three chart points as the example shown below of how to plot the Fib Extension Levels Indicator.

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

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

The First Fib Extension Level is the 61.8 Fib Extension Level pictured on the Fib Extension indicator example Below Used to Set Take Profit Orders

How Do I Read 61.8% Fibo Extension Level?

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

How Do I Read 61.8% Fib Extension Level? - How Do I Analyze 61.8% Fibo Extension Level?