Trend-Based Fibonacci Extension on Trading View
Trend Based Fibonacci Extension on Trading View
– A Thread –
Most have a common question,
“How to arrive at Targets?”
We take this thread to find out!
@in_tradingview
Before we move ahead
(Hit like & spread)
#Fibonacci #trading
When to use:
It is typically used when one needs targets above 52 Week High or considering any Swing High/Low.
We use the Fibonacci extension to achieve upside targets.
Used to identify potential price levels where a trend may extend or reverse based on the Fibonacci sequence.
Fibonaci Ext (1) V/s Trend Based Fibonacci Ext (2)
1. It is used without consideration of any existing Trend and could be to a range or channel High/Low
2. It is used in the context of an existing Trend
Finding the Tool:
You can go on any chart, Look for the toolbar on the left-hand side of the chart.
Toolbar –> Trend Based Fib Extension
Selecting Points:
1. The Starting Point:
UpTrend: Find the WaveLow
DownTrend: Find the Wave High
2. The Ending Point:
UpTrend: Find the Wave High
DownTrend: Find the Wave Low
3. The Third Point:
Repeat marking the Wave High for Upside & Wave Low for Downside
Settings:
Once you have identified the points,
Go to Settings –> Style
Select the colour scheme for different fib levels of your choice and Trend Line.
Parameters:
Go to Settings –> Coordinates
Ensure #2 & #3 Price bars are of the same value so that the projections are more accurate.
Once you have done the setup,
Shrink the chart for better viewing.
The chart will now display levels beyond the 100% level.
Common extensions include 0.618, 1.00, 1.618
These levels can serve as potential price targets.
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