.

Tip: Drawing Fibonacci in reverse gives you Fibonacci Extensions

#1
Tip: Drawing Fibonacci in reverse gives you Fibonacci Extensions

Having received a few messages via our Twitter account about how to draw Fibonacci retracements and extensions I would like to explain the easy way to draw your Fibonacci extensions. A technique which was taught to me by my old trading mentor.

For those of you who draw your Fibonacci the traditional way (swing low to swing high for an uptrend and swing high to swing low on a downtrend), draw your Fibonacci in reverse instead (swing low to swing high on a downtrend and swing high to swing low on an uptrend)!
By doing this, you will be producing the Fibonacci extension levels (for taking profit).

There's nothing complex about it, basically the significant 38.2 retracement level now becomes the 61.8 retracement level, the 50.0 retracement stays the same and so on. Some trading platforms actually give you the option to "Reverse" your Fibonacci levels already.

For me when I notice a strong uptrend or downtrend is in play, I will:

  • Draw Fibonacci retracement in "reverse"
  • Place a trade order 10 pips before from the 61.8 retracement level (or 38.2 retracement level for non-reverse Fibonacci direction)
  • Then I'll place my take profit 10 pips before the 1.618 level extension.
  • Wait for your order to be filled as price to retraces back to the 61.8 level

Fibonacci Retracement drawn traditionally
FIBONACCI RETRACEMENT TRADITIONAL.png

Fibonacci Retracement drawn in reverse to show extenstions
FIBONACCI RETRACEMENT DRAWN TO SHOW EXTENSIONS AS WELL copy.png

Save this and print it to stick it on your wall
FIBONACCI IN REVERSE.png
Myfxbook live trading results (new 2019 account coming soon)
Need custom MT4 coding? Send a PM to Mrtools or post here for a quote!


Re: Tip: Drawing Fibonacci in reverse gives you Fibonacci Extensions

#2
Hi guys !

there is another way for drawing fibo extension ,

as you see on chart ,, if we draw it normally , the numbers below 100fibo is FIBO RET. and above 0 is FIBO EXT.

Just add minus0.618 to add list and write in description FIBOEXT 161.8 , OR minus1.618 and then you have 261.8 FIBO EXT .

So we can draw it normally and just change some little things .
EURJPYH4.png
fibo level.png

Re: Tip: Drawing Fibonacci in reverse gives you Fibonacci Extensions

#3
macd & rsi wrote:
Wed Jul 03, 2019 4:52 pm
Hi guys !

there is another way for drawing fibo extension ,

as you see on chart ,, if we draw it normally , the numbers above 100fibo is FIBO RET. and below 100 is FIBO EXT.

Just add minus0.618 to add list and write in description FIBOEXT 161.8 , OR minus1.618 and then you have 261.8 FIBO EXT .
Excellent tip brother. That's actually easier :clap:
Myfxbook live trading results (new 2019 account coming soon)
Need custom MT4 coding? Send a PM to Mrtools or post here for a quote!

Re: Tip: Drawing Fibonacci in reverse gives you Fibonacci Extensions

#4
macd & rsi wrote:
Wed Jul 03, 2019 4:52 pm
Hi guys !

there is another way for drawing fibo extension ,

as you see on chart ,, if we draw it normally , the numbers above 100fibo is FIBO RET. and below 100 is FIBO EXT.

Just add minus0.618 to add list and write in description FIBOEXT 161.8 , OR minus1.618 and then you have 261.8 FIBO EXT .
YES fibo ext hacks........ thx dear sir!!! :!: :!: :!:



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