Fibo Retracement and Fibo Extension Indicators
Indices Guides
Indices Fibo Retracement Levels
Stock Indices Fibo Expansion Areas
Introduction to Fibo Retracement Areas
Fibo retracement is plotted between 2 chart points but Fib extension is plotted using 3 chart points.
Fibo Retracement Level example explained and illustrated below where the indices trend is moving down between Chart point 1 & Chart point 2, then after Chart point 2 the stock indices price retraces then it continues moving upward in original upward trend. Note that this Fibo Retracement Levels indicator is plotted from Chart point 1 to Chart point 2 in direction of the market trend.
Fibo Retracement Levels - How to Draw Fibo Retracement Levels
Introduction to Fibo Expansion Levels
Fibo retracement is plotted between 2 chart points but Fib extension is plotted using 3 chart points.
To draw these Fibo Extension levels we wait until the stock indices price retracement is complete & the stock indices price starts to move in original direction of the Indices trend. Where the retracement reaches is used as chart point 3 for Fibo extension.
The Fibo Extension example explained below shows the 3 chart Points where the Fibo Extension indicator tool is plotted, marked as chart point 1, 2 & 3. Chart point 1 is where the indices trend started, Chart point 2 is where the indices trend pulled back & retraced & Chart point 3 is where the retracement reached as shown on Fibonacci Extension example described & illustrated below.
Fibo Extension Levels - How to Draw Fibo Extension Zones
Please note where these Fibo Extension areas are plotted - Fibo Extension zones are drawn above the Fibo Extension indicator, these are the points where one will set the take-profit orders.