LikeTip: Drawing Fibonacci in reverse gives you the Fibonacci Extensions

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

Before we start, if you're looking for an Automatic Fibonacci indicator, the best one I've come across is Mladen's Fibonacci indicator for MT4.

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 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
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How to: Draw Fibonacci Extensions the easy way
How to: Identify major Support & Resistance using the line chart


Tip: Drawing Fibonacci in reverse gives you the 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

Tip: Drawing Fibonacci in reverse gives you the 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:
Trade with the broker that supports our work! FBS are offering $140 to get you started! Click, here to begin live trading, today.
No commissions are earned by Forex-station.


How to: Draw Fibonacci Extensions the easy way
How to: Identify major Support & Resistance using the line chart

Tip: Drawing Fibonacci in reverse gives you the 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!!! :exclaim: :exclaim: :exclaim:
Contribution Inspector & GIF Animator at your service👮


Tip: Drawing Fibonacci in reverse gives you the Fibonacci Extensions

#6
This is my first post. I gotten so much from this site over the years and wanted to provide a copy of a Fib indicator that I've been using for years. While the theory some what correct its application makes me want to cry.

Basics of fibs surrounds AB = CD.

Example: Choose the highest or lowest point on your chart. Timeframe doesn't matter. Lets say we choose highest point. Basic 2 candles to left and 2 to right at the higest point (This is A = 100).

From there you are not going to the next lowest point on the chart thats just crazy. Next you plot B / 0 point at the next low that has again 2 to left and 2 to right higher.

This is your AB leg. The retracement starts a 0 and triggers the 23.6, 38.2, 50, 61.8, 78.6, 86 or 100. This creates your C. This is entry in the market and exit at the D and this dependent on how deep the retracement is.

The D (-11.8, -27, -38.2, -61.8, -100) or far as your heart is content. Pullbacks to the 38, 50, 61 target is -61.8 OR other levels depending of depth of retracement.

So in easy steps A to B pullback to C profit at D then C becomes the new A and D becomes the new B and the hunt continues. The AG Fib I added the additional lines in code myself. Still working on alerts at 38, 50 and 61.8.

Im not coder but I can follow it pretty well and add things I need but alarms i havnt figured out yet.
BobokusFiboFixed.mq4
(6.17 KiB) Downloaded 833 times
AG_Multi_Color_Fib.mq4
(5.41 KiB) Downloaded 851 times
AB=CD.PNG

Tip: Drawing Fibonacci in reverse gives you the Fibonacci Extensions

#7
Here is the AG Multi Color Fibs same thing. I added additional lines for my trading. In this case the market is up until it takes out the A. As you work your fibs following the market/trend at some point the market will take out the A to signal the market has changed direction. Until the A is taken out in this case, the market is up (see above). You can also do counter fibs to estimate the target of the retracement.
AB=CD2.PNG


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