Analyze 61.8 Fibonacci Expansion Level

We use Fibonacci expansion levels to estimate where the indices trend stock indices price movement will reach. There are 2 important Fibonacci expansion areas: 61.8% Fibonacci Expansion Level and 100% Fibonacci Expansion Level - these fibonacci expansion levels are used for setting indices trading taking profit orders.

61.8% Indices Trading Fib Expansion Level

61.8 Fibonacci Expansion Level is the most commonly used indices profit-taking level when trading using the Fibo Expansion Technical Indicator.

To draw Fibonacci Expansion 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 original direction of the Indices trend. Where the stock indices price retracement reaches is used as chart point 3. Fibonacci Expansion Indices Indicator is plotted using three stock chart points as shown on the stock indices trading examples explained below of how to plot the Fibonacci Expansion Areas Technical Indicator Tool.

The Fibonacci expansion example explained and illustrated below shows the 3 Stock Indices Chart Points where the Fibonacci expansion stock indices indicator is drawn - marked as Stock Indices Chart point 1, Stock Indices Chart point 2 and 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 and retraced - Stock Indices Chart point 3 is where the stock indices price retracement reached as shown on the Fibonacci Expansion Areas Technical Indicator Tool examples explained below.

The First Fibo Expansion Level is the 61.8 Fibonacci Expansion Level shown on the Fibonacci Expansion Indicator example Below Used to Set Take Profit Indices Orders

How to Analyze 61.8% Fibonacci Expansion Level?

Please note where these Fibonacci Expansion zones are plotted on the stock indices chart - Fibo Expansion zones are drawn above the Fib Expansion Indicator - these are the stock chart points where a trader will place the indices take-profit orders using these Fibonacci Expansion Levels - 61.8% Fibonacci Expansion Levels.

How to Analyze 61.8% Fibonacci Expansion Level