Fibonacci Extension is a technical analysis tool used to forecast potential price targets beyond the current high or low—especially during strong trending markets.
Common Fibonacci Extension Levels
The most widely used levels are:
- 1.272 (127.2%)
- 1.414 (141.4%)
- 1.618 (161.8%) ⭐ (Golden Ratio – most important)
- 2.000 (200%)
- 2.618 (261.8%)
These levels often act as:
- 🎯 Profit targets
- 📉 Reversal zones
- 📊 Resistance / Support in trends
How Traders Use Fibonacci Extension
🔹 Trend Trading
- Set take-profit levels during strong trends
- Ride the trend without guessing tops or bottoms
🔹 Breakout Trading
- Estimate price targets after resistance or support breaks
🔹 Confluence Strategy
Most powerful when combined with:
- Support & Resistance
- Trend lines / Channels
- Elliott Wave (Wave 3 & Wave 5 targets)
- Candlestick confirmation
Key Notes ⚠️
- Fibonacci Extension does not guarantee price will reach those levels
- Best used in strong trending markets
- Always confirm with market structure & volume
Summary
Fibonacci Extension helps traders predict where price may go next, not where it came from.
THE ETERNAL SOVEREIGN 