In this article we will have a closer look to Fibonacci Extensions and Fibonacci Retracements
Fibonacci Retracement and Fibonacci Extension levels are in the form of horizontal lines and are calculated in almost similar manner with slight difference. Even tough they look like similar to each other they are quite different and serve for different purpose.
👉 Fibonacci retracement levels indicate how deep a retracement could be, that is, aims to measure the pullbacks within a trend
👉 Fibonacci extension levels indicate how far the next price wave could move following a pullback, that is, aims to measure the impulse waves in the direction of the trend
How to apply Fibonacci Retracement and Fibonacci Extension
These levels should not be relied on exclusively,Reversals can be confirmed with candlesticks, momentum indicators, volume or chart patterns.
Here are the links of educational posts and indicator versions of the Fibonacci Tools that I made, you are kindly invited to check
Auto Fib Channels, besides Auto Fib Channels this study include Auto Fib Retracement, Auto Fib Extension and Auto ZigZag indicator
Auto Pitchfork, is advised due to its similarities with Auto Fib Channels and also it includes Auto Fib Retracement and Auto ZigZag indicator
Auto Fib Speed and Resistance Fans, is an important tool to identify probable support and resistance and especially a powerful tool to identify reversals and retracement levels. The study presents an alternative approach of drawing the fans which enables a visualization quite similar to Gann Box. Auto Fib Retracement and Auto ZigZag indicator is also available
Related educational posts that presents a quick guide of the drawing tools as well as introductions for their automatic indicator versions
how to apply pitchfork and auto pitchfork study : how to apply fibonacci fans and auto FibFans study : how to apply fib channels and auto fib channels study :
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