Free Sign Up Already have an account? Free Sign Up now to save your chart settings. Fusion Media would like to remind you that the data contained in this fibonacci in forex is not necessarily real-time nor accurate. Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.
Three most used Fibonacci extension levels are 0. 382 extension can be applied as well. Let’s take a look at the next picture:In the example above we are in the uptrend. Lowest swing — point A — is 120. Now we need to calculate extension levels:0.
Highest swing — point A — is 158. 76Because of the downtrend we need to add to the lowest point B to find retracement. To help calculate Fibonacci levels we have also made a free tool for Forex traders — Free Fibonacci Calculator — available for downloading. Fibonacci retracement levels are used as support and resistance levels. Fibonacci extension levels are used as profit taking levels. So, what we will learn today is how to apply Fibonacci tool and how to interpret results that we see on the screen.
Fibonacci tool available within their trading platforms. So, click on Fibonacci tool from trading platform that you use. A — our lowest swing, B — our highest swing. So, we will look to BUY some lots at the good lowest price and go up with the trend. Click on A and drag your cursor to B, click. You must see different lines appeared on your chart.