How Do I Calculate Fibo Extension Levels?

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

What are the Fibo Extension Levels?

• 61.8% Fibo Extension Level
• 100% Fib Extension Level

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

To draw Fib expansion we use Three chart points.

To draw Fibonacci extension levels we wait until the price retracement is complete & price starts to move in original direction of the trend. Where the retracement reaches is used as point 3.

The example shown and described below displays the 3 Chart Points where the Fibo 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 cited on the example shown and explained below.

How Do You Calculate Fibo Extension Levels on Charts?

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