Fibonacci Extensions are used to project likely targets for the next leg of an up- or down-trend. Percentage extension levels, based on significant Fibonacci numbers, are plotted as horizontal lines above/below the previous trend move.
Active or Reactive?
Many investors follow active strategies but end up being reactive, rotating in and out of stocks at the wrong time.
Colin Twiggs' free weekly review of the global economy will help you identify market risk and improve your timing.
- Select Fibonacci Extensions from the Draw menu or toolbar
- Drag your mouse over the selected range (of the rally or decline)
- Select Highs and Lows for short-term charts or Closing Price for long-term
- Click the select button to complete the drawing.
Note how the next advance found resistance at the 50% level.
Improve Your Market Timing
Colin Twiggs' weekly review of macro-economic and technical indicators will help you identify market risk & improve your timing.
Join our free Trading Diary mailing list with over 140,000 subscribers.
Add or delete Fibonacci levels by right-clicking on any Fibonacci Line and selecting Fibonacci Drawing Options (or select Draw >> Draw Options >> Fibonacci from the chart menu).
You can add further levels, remove existing levels or reset the default fibonacci levels.
Amend Fibonacci colors by right-clicking on any Fibonacci Line and selecting
Adjust Line Color.
To change the default color for all Fibonacci lines, select Format Charts >> Colors >> Fibonacci Retracements (or Extensions) from the chart menu.
To delete Fibonacci Lines, right-click on one of the lines and select Delete from the menu.