How to Use Fibo Extension Levels

We use Fib Extension Areas to estimate where the market trend movement will reach. There are two important Fib Extension areas: 61.80% and 100% Fib Expansion Levels, these are used for taking profit.

To draw Fibo Extension levels on the MetaTrader 4 chart we wait until the price retracement is complete & the price starts to move in original direction of the trend. Where the price retracement reaches is used as chart point 3. Fibonacci Extension MetaTrader 4 Indicator is plotted using three chart points as illustrated on the trading examples explained below of how to plot the Fibo Extension Indicator MT4 Tool.

The Fibo Extension MT4 Indicator example explained below shows the Three Chart Points where the Fibo Extension MT4 indicator is plotted, marked as Chart point 1, Chart point 2 and Chart point 3.

Chart point 1 is where the trend started, Chart point 2 is where the trend pulled back & retraced & Chart point 3 is where the retracement reached as portrayed on the Fibo Extension MetaTrader 4 Indicator Tool examples explained below.

How to Use Indices Fibo Expansion Levels - Indices Fib Extension Guide

How to Use Indices Fibo Expansion Levels - Indices Fib Extension Guide

Please note where these Fibo Extension areas are plotted - Fibo Extension zones are drawn above the MetaTrader 4 Fibonacci indicator, these are the chart points where one will set takeprofit orders using these Fibo Extension Levels - 61.80% and 100.00% Fib Extension Areas.

Upward Trend - How to Use Fibo Extension in Indices - How to Use Fibo Expansion Levels - Fib Extension PDF

We use Fib Extension Areas to estimate where the market trend movement will reach. There are two important Fib Extension areas: 61.80% Fibo Extension Level and 100% Fib Extension Level, these Fibo Extension Levels are used for taking profit.

On the Fibo Extension MetaTrader 4 indicator example explained and illustrated below you can see that the Fibo Extension MetaTrader 4 stock technical indicator tool is plotted along the direction of the trend, since the trend is upward - the MetaTrader 4 Fib Extension indicator is plotted upwards.

These Fibo Extension levels are displayed as horizontal lines above the Fib Extension MetaTrader 4 indicator, showing profit taking areas. In the examples explained below if you had used the 100.00% Fib Extension level the you would have made good profit from the trade set-up.

How to Use Indices Fibo Expansion Levels - Indices Fib Extension Guide

How to Use Fibo Extension in Stock Indices - How to Use Fibo Extension Levels

From the above Fib Extension MT4 indicator example, upward trend continued and both 61.8% & 100.00% Fibo Extension levels were all hit after which price retraced again after getting to the 100.00% Fibo Extension level.

How to Use Fibo Expansion Levels

Since we use the Fibo Extension MetaTrader 4 stock indicator tool to estimate take profit levels, how do we draw MT4 Fib Extension in a downward trend?

We draw the Fibo Extension MetaTrader 4 stock tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the trading examples explained below. Remember we always draw this Fibo Extension MetaTrader 4 stock technical indicator tool in direction of the market trend. In the Fibo Extension example explained and illustrated below, can you figure what's the direction which we have plotted it? That's right - downward direction.

Try and identify the difference between how we have drawn Fibo Extension indicator above and how Fibo Extension indicator is plotted below. This time you'd also have used Fibo Extension area 100.00 %, just where the price reached as illustrated on the example explained below. That would have been a good level for profit taking.

How to Use Stock Indices Fibo Expansion Levels - Stock Indices Fib Extension Guide

How to Use Fibo Extension in Stock Indices - How to Use Fibo Extension Levels

From the Fibo Extension MetaTrader 4 indicator examples above, after drawing this MT4 Fibo Extension tool there are two levels that are used to show the profit taking areas, these 2 Fibo Extension levels are plotted as horizontal lines across the price trading chart marked as 61.8 percent Stock Indices Fibo Extension Level and 100% Fib Extension Level.