Fibo Expansion Indicator Tutorial

To Calculate Fib Expansion levels on indices charts we use the Fibo Expansion Indicator

What are the Fibo Extension Levels?

• 61.8% Fibo Expansion Level
• 100% Fib Expansion Level

We use Fibonacci expansion levels to estimate where the stock indices trading price movement will reach. There are two important fibonacci expansion areas: 61.8% and 100% Fibo Expansion zones, these level are used for taking profit.

To draw Fibonacci expansion we use Three chart points.

To draw Fibonacci extension levels we wait until the stock indices trading price retracement is complete & indices trading price starts to move in original direction of the Indices trend. Where the retracement reaches is used as point 3.

The example explained and illustrated below shows the 3 Chart Points where the Fibo expansion indicator is plotted, marked as chart point 1, 2 and 3. Chart point 1 is where the stock indices price trend started, Chart point 2 is where the stock indices price trend retraced and chart point 3 is where the stock indices trading price retracement reached as portrayed on the stock indices trading examples explained below.

Fibo Expansion Indicator Explained

The two Fibo expansion levels 61.8% & 100% Fibo Expansion zones were then drawn above the Fibo Expansion Indicator as shown on the stock indices trading example above.