In TradingView, right-click on the indicator and select “Clone” to add another indicator to the chart.The Fibonacci Extension tool can be applied to any market, and any time frame from tick charts to weekly charts and beyond.Figure 1 above shows the Fibonacci extension tool applied to an up wave.
This relationship is based on the “Golden Ratio” and a series of “Fibonacci Numbers” which help define the numerical relationship of one thing to another.As a quick introduction, the following are Fibonacci numbers:0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377….The next number in the sequence is the sum of the prior two numbers before it. When I am day trading (see how I do it I do use the Fibonacci expansion levels in my investing (longer-term trading). This website is free for you to use but we may receive commission from the companies we feature on this site. When the price continues higher it stops very close one of the extension point 100, and then reverses.The level the price stops at will vary depending on the strength of the trend. The tool then helps predict where the next up wave is likely to go–in this case to the 100% level, circled on the chart.Double click on the tool to move it or edit it. My investing strategy is to buy stocks and commodities at very depressed prices. Therefore, using Fibonacci extension levels for profit targets is preferred to using extension levels in an attempt to predict where a trend will reverse.
Can you very kindly apply it to PROFIT trading platform?ur example above applies to MetaTrader4 platform what about other platforms like ProfitMan, I really like you way for explaining things you made my life more easer tho. Once the reversal occurs we can then draw another Fibonacci extension, but we will keep the old one(s) on the chart as well, since down the road there are additional levels which can still be used such as the 200, 238.2, 261.8 and 300.Figure 2 shows two Fibonacci extension levels applied to consecutive waves in an uptrend.Once the price starts to move higher, we can draw a second Fibonacci extension, as shown in Figure 2. Sometimes the price will charge through the 61.8 level and proceed to the 100 level. Since we are assuming the uptrend will continue, we look for these Fibonacci clusters above the former high.I have circled a second area in grey, which is where we have three Fibonacci levels in close proximity to one another. The third number is 1 because the prior two numbers are 0 and 1. 89 is the result of adding 34 and 55. Once the asset has a major move higher, that up wave can be used to project the next wave…and the next. Once the price reaches this level, it often experiences a big pullback before having another move to the upside (uptrends typically have at least 3 big waves to the upside). The tool starts at the bottom of an up wave and connects to the top of the up wave; the second line of the tool reaches down to the low of the retracement following the wave higher. I typically assume that the next wave will go to the 100 or 161 level, but I do look to history to tell me if the particular asset shows this tendency. For this third up wave, I typically assume it will be the same size as the first wave higher (or about 0.618 of the second wave up).In other words, I am using a few common tendencies to construct Using Fibonacci extensions isn’t required to trade successfully. This relationship is based on the “Golden Ratio” and a series of “Fibonacci Numbers” which help define the numerical relationship of one thing to another.As a quick introduction, the following are Fibonacci numbers:0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377….The next number in the sequence is the sum of the pri… Therefore, we look for areas where the most Fibonacci levels are clustered. As the downtrend progresses it reaches more and more of the extension levels, all which could be potential profit target areas for The tool can be applied to any time frame, from tick charts all up to daily or monthly charts; no matter what timeframe you trade on the application of the tool is the same.Fibonacci extension levels indicate potential profit target areas. I don’t typically use the Fibonacci expansion tool in my short-term trading, but I do use it in a rather complex way for my investing strategy.
Since the number shows the relationship between an infinite amount of numbers (once the sequence gets going), it also tends to appear throughout nature.Common Fibonacci Extension levels are 161.8%, 261.8% and 423.6%.