How to Use Fibonacci Extensions to Identify When to Take Profit!
This thread is an extension to previous thread which was on "How to Use Fibonacci Retracement".
A Master Thread👇🧵
This thread is an extension to previous thread which was on "How to Use Fibonacci Retracement".
A Master Thread👇🧵
Let us begin with an example of an upward trend.
The main principle in an uptrend is to take gains on a long trade at a Fibonacci Price Extension Level.
You use three mouse clicks to figure out the Fibonacci extension levels.👇
The main principle in an uptrend is to take gains on a long trade at a Fibonacci Price Extension Level.
You use three mouse clicks to figure out the Fibonacci extension levels.👇
First, click on a significant Swing Low, then drag your cursor and click on the most recent Swing High. Finally, drag your cursor back down and click on any of the Fib retracement levels where the stock found support.
Let's go back to the GESHIP chart we showed you in the last Tweet as an example.
The 38.20% Fibonacci level provided solid support, and after a brief pause at support, the GESHIP resumed its rise. In the chart below, the price has even surpassed the prior Major Swing High.
The 38.20% Fibonacci level provided solid support, and after a brief pause at support, the GESHIP resumed its rise. In the chart below, the price has even surpassed the prior Major Swing High.
Let's use Fibonacci extension to discover where to take profits.
You use three mouse clicks to figure out the Fibonacci extension levels.
As shown in GESHIP, 61.8%, 100%, 1.27%, and 1.618% would have been good profit levels.
You use three mouse clicks to figure out the Fibonacci extension levels.
As shown in GESHIP, 61.8%, 100%, 1.27%, and 1.618% would have been good profit levels.
Now, downtrend.
In a downturn, take profits on a short position at a Fibonacci extension level, since the market frequently finds support there.
First, pick a notable Swing High, then click the latest Swing Low. Drag your mouse up and click any retracement levels.
In a downturn, take profits on a short position at a Fibonacci extension level, since the market frequently finds support there.
First, pick a notable Swing High, then click the latest Swing Low. Drag your mouse up and click any retracement levels.
Let's go back to the Amararaja bat chart we showed you in the last Tweet as an example.
The 38.20% Fibonacci level provided solid Resistance, and after a brief pause at Resis, the Amarajabat resumed its Fall. In chart below, the price has even surpassed prior Major Swing Lows.
The 38.20% Fibonacci level provided solid Resistance, and after a brief pause at Resis, the Amarajabat resumed its Fall. In chart below, the price has even surpassed prior Major Swing Lows.
Let's use Fibonacci extension to discover where to take profits.
You use three mouse clicks to figure out the Fibonacci extension levels, as we learnt in above given image.
As shown in Amarajabat, 0.618%, 0.786%, 1.00%, and would have been good profit levels.
You use three mouse clicks to figure out the Fibonacci extension levels, as we learnt in above given image.
As shown in Amarajabat, 0.618%, 0.786%, 1.00%, and would have been good profit levels.
If you found this worthwhile than do spread the word about it and help us educate beginner and fellow traders.
Happy Reading:)
Happy Reading:)
Here is my previous thread which focuses on How to Fibonacci Retracements!
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