2.9 - Fibonacci extensions

FibinacciPurpose: extensionsTo buildset onprice fibonaccitargets retracements.& support / resistance levels

While fib retracements are forused whereto the price may retrace to, an extension showsmeasure where price maymight goretrace 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.