How to Analyze 61.8 Fibonacci Extension Level
We useFibonacci Extension Levels to estimate where the indices trend movement will reach. There are 2 important Fibonacci Extension levels; 61.8% and 100% Fibonacci Extension Levels, these are used for taking profit.
61.8 Indices Trading Fib Extension Level
61.8 Indices Trading Fib Extension Level is the most commonly used indices profit taking level when trading using the Fibonacci Extension Indicator.
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 stock indices trading example explained and illustrated below of how to draw the Fibonacci Extension Indicator Tool.
The Fibonacci Extension example explained and illustrated below shows the 3 Chart Points where the Fibonacci Extension 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 shown Below Used to Set Take Profit Indices Orders
Fibonacci Extension Level is the 61.8 Indices Trading Fib Extension Level shown Below 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 - 61.8% Fibonacci Extension Levels.