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