Are Fibonacci extensions external levels?

Fibonacci extensions, also known as Fibonacci expansions or Fibonacci projections, are external levels because they go beyond the 100% level. You may already know about the Fibonacci levels. 23.6%, 38.2%, 50%, 61.8%, and 78.6% are known as the Fibonacci levels. These are all internal levels as they lie inside the threshold.

What is a trend-based FIB extension?

Extension levels are also possible areas where the price is expected to reverse. Extensions are drawn on a chart, marking the price levels of possible importance. These levels are based on Fibonacci ratios. To draw Trend-Based Fib Extension, three points needed. Once the three points are set, the level lines are drawn up to Fibonacci sequence.

How is a fib extension calculated?

Fib extensions are calculated by simply adding 100 to retracement levels such as 23.6 plus 100 yields 123.6. Fib retracement is used when the price moves are within the trend. When the price goes above the 100% Fib level of the base trend, the transition takes place from retracement to the Fib extension.

What percentage of FIBs are above 100?

So, the primary Fib numbers above 100 include: 123.6%; 138.2%, 150.0%, 161.8%, and 261.8%. One simple way to remember these Fibo extension levels is by simply adding 100 to each of the standard Fibonacci levels: And for the 261.8 level, by adding 200 to the most important Fibonacci level – the 61.8% ratio: