Fibonacci Extension Indicator Example

To Calculate Fibo Extension levels on crypto charts we use the Fibonacci Extension Indicator

What are the Fibo Extension Levels?

• 61.80% Fibo Extension Level
• 100% Fibonacci Extension Level

We use Fibo expansion areas to estimate where the bitcoin trading price movement will reach. There are 2 important fibonacci expansion areas: 61.8% and 100% Fibonacci Extension levels, these level are used for taking profit.

To draw Fib expansion we use Three chart points.

To draw Fibonacci extension levels we wait until the bitcoin price retracement is complete and bitcoin price starts to move in the original direction of the Bitcoin trend. Where the retracement reaches is used as point 3.

The example illustrated below shows the 3 Chart Points where the Fibonacci extension indicator is drawn, marked as chart point 1, 2 and 3. Chart point 1 is where the bitcoin trading price bitcoin trend started, Chart point 2 is where the bitcoin trading price bitcoin trend retraced and chart point 3 is where the bitcoin price retracement reached as shown on the cryptocurrency trading example illustrated below.

How Do You Calculate Fibonacci Extension Levels on Crypto Charts?

The two Fibo extension levels 61.8% & 100% Fibonacci Extension levels were then drawn above the Fibonacci Extension Indicator as shown on the cryptocurrency trading example above.