How to Analyze 100.0 Fibonacci Extension Level

We useFibonacci expansion levels to estimate where the indices trend movement will reach. There are 2 important Fibonacci expansion levels; 61.8% and 100.0% Fibonacci Extension Levels, these are used for taking profit.

100.0 Indices Trading Fib Extension Level

100.0 Indices Trading Fib Extension Level is not commonly used to set indices profit taking orders when trading using the Fibonacci Extension Indicator.

Most indices traders will use the 61.8% Fibonacci Extension level.

To draw Fibonacci Extension levels on the stock indices chart we wait until the stock indices price retracement is complete and the stock indices price starts to move in the original direction of the Indices trend. Where the stock indices price retracement reaches is used as chart point 3. Fibonacci Extension Indicator is drawn using three chart points as shown on the trading example explained and illustrated below of how to draw the Fibonacci Extension Indicator Tool.

The Fibonacci expansion example explained and illustrated below shows the 3 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 shown on the Fibonacci Extension Indicator Tool example explained and illustrated below.

The First Fibonacci Extension Level is the 61.8% Indices Trading Fib Extension Level and the second is 100.0 Indices Trading Fib Extension Level shown Below - These Fibonacci Extension Levels are Used by Indices Traders to Set Take Profit Indices Orders

61.8% Indices Trading Fib Extension and 100.0% Indices Trading Fib Extension Level Used to Set Take Profit Indices Orders

Please note where these Fibonacci Extension levels are drawn - Fibonacci Extension levels are drawn above the Fibonacci indicator, these are the chart points where a indices trader will set the take profit orders using these Fibonacci Extension Levels - 100.0% Fibonacci Extension Level is the second Fibonacci Level.