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.

What is a trend-based Fibonacci extension?

Extension levels are areas where the price is expected to reverse. The Trend-Based Fibonacci Extensions (TBFEs) are drawn on any chart and work through the use of the Fibonacci ratios. In bull markets, the Fibonacci Extensions tool is particularly useful to determine strong resistance when the price of an asset is found at price discovery.

How to draw a trend based FIB extension?

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. The first point chosen is the start of a move, the second point is the end of a move, and the third point is the end of the retracement against that move.

How do I change the position of a trend-based FIB extension?

In Coordinates properties dialog, you can set precisely the position of the Trend-Based Fib Extension's initial points' position on the price scale (by setting the price) and the time scale (by setting the bar number) and save these custom changes as a template if needed: