How Do I Calculate Stocks Fibonacci Extension Levels?
To Calculate Stocks Fibonacci Extension levels on stock charts we use the stocks Fibonacci Extension Indicator
What are the Stocks Fibonacci Extension Levels?
- 61.8% Stocks Fibonacci Extension Level
- 100% Stocks Fibonacci Extension Level
We use Fibonacci expansion levels to estimate where the price movement will reach. There are 2 important fibonacci expansion areas: 61.8% and 100% Stocks Fibonacci Extension levels, these level are used for taking profit.
To draw Fibonacci expansion we use 3 chart points.
To draw Fibonacci extension 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 extension 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 Extension Levels on Stocks Charts? - Stocks Fibonacci Extension Indicator Explained
The two Fibonacci extension levels 61.8% and 100% Stocks Fibonacci Extension levels were then drawn above the Stocks Fibonacci Extension Indicator as shown on the stocks example above.
