How to Analyze 61.8 Fib Expansion Level

We useFibonacci expansion areas to estimate where the market trend movement will reach. There are two important Fibo expansion areas: 61.8% and 100% Fib Extension Levels, these are used for taking profit.

61.8 Indices Trading Fibonacci Expansion Level

61.8 Indices Trading Fibonacci Expansion Level is the most commonly used indices profit taking level when trading using the Fibo Expansion Technical Indicator.

To draw Fib Expansion 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. Fib Expansion Indicator is plotted using three chart points as displayed on the stock indices example explained below of how to plot the Fibo Expansion Technical IndicatorTool.

The Fib expansion examples described below shows the Three Chart Points where the Fibo expansion indicator is plotted, 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 portrayed on the Fib Expansion Indicator Tool example explained below.

The First Fib Expansion Level is the 61.8 Indices Trading Fib Expansion Level shown Below Used to Set TakeProfit Indices Orders

Fib Expansion Level is the 61.8 Indices Trading Fib Expansion Level shown Below Used to Set TakeProfit Indices Orders

Please note where these Fib Expansion zones are plotted - Fib Expansion areas are plotted above the Fib indicator, these are chart points where one will set take-profit orders using these Fibo Extension Levels - 61.8% Fibo Expansion Levels.