Fibonacci Extension
Fibonacci Extension is a technical analysis tool used to identify potential levels of support and resistance. It is based on the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding numbers. Fibonacci Extension is used to project the levels of support and resistance beyond the initial trend line. It is used to identify potential levels of support and resistance for a given security.
History of Fibonacci Extension
The Fibonacci sequence was first discovered by the Italian mathematician Leonardo Fibonacci in the 13th century. He discovered that the sequence of numbers could be used to describe the growth of a population of rabbits. The sequence has since been used in many different fields, including mathematics, music, art, and finance. Fibonacci Extension is a tool used in technical analysis to identify potential levels of support and resistance. It is based on the Fibonacci sequence and is used to project the levels of support and resistance beyond the initial trend line.
Table of Comparisons
| Level | Fibonacci Extension |
|---|---|
| 0.618 | Support |
| 1.618 | Resistance |
| 2.618 | Support |
| 3.618 | Resistance |
Summary
Fibonacci Extension is a technical analysis tool used to identify potential levels of support and resistance. It is based on the Fibonacci sequence and is used to project the levels of support and resistance beyond the initial trend line. It is used to identify potential levels of support and resistance for a given security. For more information about Fibonacci Extension, you can visit Investopedia, TradingView, and other financial websites.
See Also
- Fibonacci Retracement
- Fibonacci Time Zones
- Fibonacci Arcs
- Fibonacci Fans
- Gann Fans
- Gann Angles
- Elliot Wave Theory
- Moving Averages
- Bollinger Bands
- Relative Strength Index (RSI)
