How Do You Analyze Fibonacci Expansion Levels on Indices Charts?
Stock Indices Trade Fibonacci Expansion Levels on Indices Charts
To Calculate Fib Expansion levels on indices charts we use the Fibonacci Expansion Indicator
What are the Fibo Expansion Levels?
- 61.8% Fibonacci Expansion Level
- 100% Fib Expansion Level
We use Fibonacci expansion levels to estimate where the stock indices price movement will reach. There are 2 important indices trading fibonacci expansion areas: 61.80% and 100% Fib Expansion levels, these level are used for taking profit.
To draw Fibonacci expansion levels indicatorwe use 3 stock chart points.
To draw Fibonacci expansion levels we wait until the stock indices price retracement is complete and the indices instrument starts to move in the original direction of the Indices trend. Where the stock indices price retracement reaches is used as chart point 3.
The stock indices trading example explained and illustrated below shows the 3 Indices Chart Points where the Fibonacci expansion indicator is drawn, marked as stock chart point 1, 2 and 3. Indices Chart point 1 is where the stock indices price trend started, Indices Chart point 2 is where the stock indices price trend retraced and stock chart point 3 is where the stock indices price retracement reached as shown on the stock indices trading examples explained below.
Fibonacci Expansion Indices Indicator Guide
The two Fibo expansion levels 61.8% & 100% Fibonacci Expansion levels were then drawn above the Fibonacci Expansion Indices Indicator as shown on the stock indices trading example above.
How Do You Interpret Fibonacci Expansion Levels on Indices Charts?
