How to Analyze 100.0 Fibonacci Extension Level
We useFibonacci expansion areas to estimate where the market trend movement will reach. There are 2 important Fib expansion areas: 61.80% and 100.0% Fibonacci Extension Levels, these are used for taking profit.
100.0 Indices Trading Fib Extension Level
100.0 Indices Fibonacci Extension Level isn't oftenly used to set indices profit taking orders when trading using the Fibo Extension Technical Indicator.
Most indices traders will use the 61.8% Fibonacci Extension level.
To draw Fibonacci Extension levels on the stock indices chart we wait until the stock indices trading price retracement is complete & stock indices trading price starts to move in original direction of the Indices trend. Where the stock indices price retracement reaches is used as chart point 3. Fibonacci Extension Indicator is plotted using three chart points as illustrated on the trading example explained below of how to plot the Fib Extension Technical Indicator Tool.
The Fib expansion examples described below shows the Three Chart Points where the Fibonacci expansion indicator is drawn, marked as Chart point 1, Chart point 2 and Chart point 3.
Chart point 1 is where the indices trend started, Chart point 2 is where the indices trend pulled back and retraced and Chart point 3 is where the stock indices retracement reached as displayed on the Fib Extension Technical Indicator Tool example explained below.
The First Fibonacci Extension Level is the 61.8% Indices Fibonacci Extension Level and the second is 100.0 Indices Trading Fib Extension Level shown Below - These Fibonacci Extension Levels are Used by Indices Traders to Set Take Profit Indices Orders
61.8% Indices Fibonacci Extension and 100.0% Indices Trading Fib Extension Level Used to Set Take Profit Indices Orders
Please note where these Fibo Extension areas are drawn - Fibonacci Extension zones are plotted above the Fibo indicator, these are chart points where one will set take-profit orders using these Fibonacci Extension Levels - 100.0% Fibonacci Extension Level is the second Fibonacci Level.
