🔥TYPES OF FIBONACCI TOOLS🔥

There are several types of Fibonacci tools that are commonly used in technical analysis, including:

📊FIBONACCI RETRACEMENT
Fibonacci retracement levels—stemming from the Fibonacci sequence—are horizontal lines that indicate where support and resistance are likely to occur.Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not officially a Fibonacci ratio, 50% is also used.The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points.

📊FIBONACCI EXTENCION
Fibonacci extensions don't have a formula. When the indicator is applied to a chart, the trader chooses three points. 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. The extensions then help project where the price could go next. Once the three points are chosen, the lines are drawn at percentages of that move.Extensions are drawn on a chart, marking price levels of possible importance. These levels are based on Fibonacci ratios (as percentages) and the size of the price move the indicator is being applied to.

📊FIBONACCI PROJECTION
Fibonacci projections are mainly used to get the possible target levels of an ongoing uptrend or downtrend. It
is drawn by joining three points unlike Fibonacci Retracement which has just two points- by joining the lowest
and the highest points of a pre-defined.In order to draw the Fibonacci projections for an asset in an uptrend, we need 3 points:

👉Swing Low - that is the point from which the actual trend started.
👉Swing High - the point at which price started to retrace.
👉Low of the ongoing price correction.

Fibonacci projections provide potential good levels to book profits. The important Fibonacci projections levels
to watch out for are 61.8%, 100%, 161.8%, 200%, and 261.8%.

📊FIBONACCI EXPANSION(SIMILAR TO PROJECTION)
Essentially, Fibonacci expansions allow us to project how far a potential price move is likely to travel. This price move is typically considered an impulsive price move, in the context of Elliott wave. That is to say that it will typically follow a corrective phase and thus form a new trend leg in the direction of the larger trend.In that way it is very different compared to Fibonacci retracements. Unlike Fibonacci retracements which measure an internal retracement against a larger trend leg, a Fibonacci expansion measures an external price leg.

CONCLUSION
It's important to note that the use of Fibonacci tools in trading is just one aspect of technical analysis and should not be used in isolation.
I myself use Fibonacci regularly but I also combine them with technical key levels and with the price action patterns on top of that.


I Hope you guys learned something new today✅

Wish you all Best Of Luck👍

😇And may the odds be always in your favor😇

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