Analyze 100.0 Fibonacci Extension Level

We use Fibonacci extension levels to estimate where the trend movement will reach. There are 2 important Fibonacci extension levels: 61.8% Fibonacci Extension Level and 100.0% Fibonacci Extension Level, these indices fibonacci extension levels are used for setting indices trading taking profit orders.

100.0 Fibonacci Extension Level

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

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

To draw Fibonacci Extension levels indicator on the stock indices chart we wait until the stock indices price retracement is complete and the stock indices price starts to move in original direction of the stock indices trend. Where the stock indices price retracement reaches is used as chart point 3. Fibonacci Extension Indicator is plotted using 3 chart points as illustrated on the Fibonacci Extension indicator examples explained below of how to plot the Fibonacci Extension Levels Indicator.

The Fibonacci extension indicator example shown below the 3 Stock Indices Chart Points where the Fibonacci extension indicator is drawn - marked as Stock Indices Chart point 1, Stock Indices Chart point 2 & Stock Indices Chart point 3.

Stock Indices Chart point 1 is where the indices trend started, Stock Indices Chart point 2 is where the stock indices price pulled back & retraced & Stock Indices Chart point 3 is where the indices retracement reached as displayed on the Fibonacci Extension Areas Indicator example shown below.

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

How to Analyze 100.0% Fibonacci Extension Level?

Please note where these Fibonacci Extension areas are plotted on the stock indices chart - Fibonacci Extension zones are drawn above the Fibo Extension indicator, these are the stock chart points where a trader will place the indices take-profit orders using these Fibonacci Extension Levels - 100.0% Fibonacci Extension Level is the second Fibonacci Level.

How to Analyze 100.0% Fibonacci Extension Level