How to Analyze 61.8 Fibonacci Expansion Level

We useFibonacci expansion areas to estimate where the market trend movement will reach. There are 2 important Fibo expansion areas: 61.8% and 100% Fibonacci Expansion Levels, these are used for taking profit.

61.8 Indices Trading Fib Expansion Level

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

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

The First Fibonacci Expansion Level is the 61.8 Indices Trading Fibonacci Expansion Level illustrated Below Used to Set Take Profit Indices Orders

Fibonacci Expansion Level is the 61.8 Indices Trading Fibonacci Expansion Level illustrated Below Used to Set Take Profit Indices Orders

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