2.9 - Fibonacci extensions

Purpose: To set price targets & support / resistance levels

While fib retracements are used to measure where price might retrace to, extensions are where price might extend to

Fib extension levels are expressed on ratios as percentages, being:

• 1.272
• 1.618
• 2
• 2.618
• 3.618
• 4.236

To draw a retracement, you go from swing low to swing high to the next swing low.

The 1.618 is usually the strongest magnet.