How Do I Calculate Fibonacci Expansion Levels on Stocks Charts?
To Calculate Stocks Fibonacci Expansion levels on stock charts we use the stocks Fibonacci Expansion Indicator
What are the Stocks Fibonacci Expansion Levels?
- 61.8% Stocks Fibonacci Expansion Level
- 100% Stocks Fibonacci Expansion Level
We use Fibo expansion levels to estimate where the price movement will reach. There are 2 important fibonacci expansion areas: 61.8% and 100% Stocks Fibonacci Expansion levels, these level are used for taking profit.
To draw Fibo expansion we use 3 chart points.
To draw Fibonacci expansion levels we wait until the stocks price retracement is complete & the stocks instrument starts to move in the original direction of the Stocks trend. Where the retracement reaches is used as point 3.
The example illustrated and explained 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 stocks trend started, Chart point 2 is where the price stocks trend retraced and chart point 3 is where the price retracement reached as illustrated on the stocks examples illustrated & described below.
How Do I Calculate Fibonacci Expansion Levels on Stocks Charts? - Stocks Fibonacci Expansion Indicator Explained
The two Fibonacci expansion levels 61.8% and 100% Stocks Fibonacci Expansion levels were then drawn above the Stocks Fibonacci Expansion Indicator as shown on the stocks example above.
