lesson 6 – fibonacci extension

Welcome to lesson number six!

This one is all about the „fibonacci extension“ tool.

You can find it on the left sight in your tool bar:

It is giving us targets for convergences. Read that again!

I will explain it for you:

In the given example you can see that the daily TC´d up and confirmed all the daily bullish
convergences. Then the price retraced back down into the fibonacci retracement support level (
straight into the .618 and .66 level ) These levels were holding as support and then the price went
higher and confirmed the daily re-tc up for a daily bullish convergence at the 4th of January 2023.
Since then the price is pumping hard ( which is in confluence with a 2 Day timeframe bullish
convergence and the Weekly timeframe bullish divergence push ).
The fibonacci extension pull is using these levels as the most important ones:
Every given level is a potential take profit level!

That means:

.618 is TP1

100 is TP2

1.618 is TP3

200 is TP4

2.618 is TP5

3.618 is TP6

4.236 is TP7

All of them are potential targets for the given convergence in the given timeframe.

You don´t need to take profit at every level. Taking profit accordingly requires a lot of experience.
That´s why I recommend to take some profits off your position at every given level, if you are a
beginner. „No one ever faced bankruptcy through taking profit.“

You will find a lot of variations of fib extension levels but I highly recommend to use these levels!

Q: How do I pull a fib extension correctly?

A: In the same way like using the „fibonacci retracement tool“. Always from the left to the right!

In this bullish example from the low, to the top and to the low.

If it would be a bearish pull ( opposite pull to find bearish targets in a downtrend ) then you would
pull from the top, to the bottom, to the top.
end of lesson 6 – Sincerely, Chris Goldstein