![]() The main difference between a Fibonacci retracement and extension is that Fibonacci retracements are typically used to make a case for entering a trade, whereas Fibonacci extensions are typically used in determining where to take profits. Fibonacci Retracement and Extension Basics In this article, I’m going to show you some Fibonacci retracement and extension basics as well as how you might use Fibonacci retracements and extensions in your own trading. Like price, support and resistance levels, volume, etc., Fibonacci levels are leading indicators. Most traders don’t use Fibonacci levels alone to take trades but combine them with other indicators in their trading system to qualify or disqualify trades. ![]() Do you use Fibonacci ratios in your trading? Like many other technical analysis tools, Fibonacci ratios can be powerful trading indicators that act as self-fulfilling prophecies due to their popularity. ![]()
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January 2023
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