Индикатор Extension Форекс

What Are Fibonacci Extensions?

Fibonacci extensions are a tool that traders can use to establish profit targets or estimate how far a price may travel after a pullback is finished. Extension levels are also possible areas where the price may reverse.

Drawn as connections to points on a chart, these levels are based on Fibonacci ratios (as percentages). Common Fibonacci extension levels are %, %, %, %, and %.

Creating Fibonacci Extensions

Fibonacci ratios are common in everyday life and nature, seen in galaxy formations, architecture, shells, hurricanes, and some plants. Therefore, some traders believe these common ratios may also have significance in the financial markets.

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.

How to Calculate Fibonacci Retracement Levels

You can calculate Fibonacci retracement levels by completing the following steps:

1. Multiply the difference between points one and two by any of the ratios desired, such as or This gives you a dollar amount.
2. If projecting a price move higher, add the dollar amount above to the price at point three. If projecting a price move lower, subtract the dollar amount from step one from the price at point three.

For example, if the price moves from $10 to $20, back to $15, $10 could be point one, $20 point two, and $15 point three. The Fibonacci levels will then be projected out above $15, providing levels to the upside of where the price could go next. If instead, the price drops, the indicator would need to be redrawn to accommodate the lower price at point three.

If the price rises from $10 to $20, and these two price levels are points one and two used on the indicator, then the % level will be $ ( x $10) above the price chosen for point three. In this case, point three is $15, so the % extension level is $ ($15 + $). The % level is $10 above point three for an extension level of $25 (( x $10) + 15).

The ratios themselves are based on something called the golden mean or ratio. To learn about this ratio, start a sequence of numbers with zero and one, and then add the prior two numbers to end up with a number string like this:

0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, , , , ,

The Fibonacci extension levels are derived from this number string. Excluding the first few numbers, as the sequence gets going, if you divide one number by the prior number, you get a ratio approaching , such as dividing by Divide a number by two places to the left and the ratio approaches Divide a number by three to the left and the ratio is

The key Fibonacci extension levels include %, %, 50%, %, and %. Also common are %, %, %, and %. The % and % levels are not official Fibonacci numbers, but they are useful since they project a similar move (or a multiple of that move) to what just happened on the price chart.

What Do Fibonacci Extensions Tell You?

Fibonacci extensions are a way to establish price targets or find projected areas of support or resistance when the price is moving into an area where other methods of finding support or resistance are not applicable or evident.

If the price moves through one extension level, it may continue moving toward the next. That said, Fibonacci extensions are areas of possible interest. The price may not stop or reverse right at the level, but the area around it may be important. For example, the price may move just past the level, or pull up just shy of it, before changing directions.

If a trader is long on a stock and a new high occurs, the trader can use the Fibonacci extension levels for an idea of where the stock may go. The same is true for a trader who is short. Fibonacci extension levels can be calculated to give the trader ideas on profit target placement. The trader then has the option to decide whether to cover the position at that level.

Fibonacci extensions can be used for any timeframe or in any market. Typically, clusters of Fibonacci levels indicate a price area that will be significant for the stock, and also for traders in their decision making. Since extension levels can be drawn on different price waves over time, when multiple levels from these different waves converge at one price, that could be a very important area.

The Difference Between Fibonacci Extensions and Fibonacci Retracements

While extensions show where the price will go following a retracement, Fibonacci retracement levels indicate how deep a retracement could be. In other words, Fibonacci retracements measure the pullbacks within a trend, while Fibonacci extensions measure the impulse waves in the direction of the trend.

Limitations of Using Fibonacci Extensions

Fibonacci extensions are not meant to be the sole determinant of whether to buy or sell a stock. Investors should use extensions along with other indicators or patterns when looking to determine one or multiple price targets. Candlestick patterns and price action are especially informative when trying to determine whether a stock is likely to reverse at the target price.

There is no assurance price will reach or reverse at a given extension level. Even if it does, it is not evident before a trade is taken which Fibonacci extension level will be important. The price could move through many of the levels with ease, or not reach any of them.

According to a recent report by the Bank for International Settlements (BIS), there are, on average, almost $6 trillion of forex transactions on a daily basis. With so many participants—most of whom are trading for speculative reasons—gaining an edge in the forex market is crucial.

Fundamental analysis provides a broad view of a currency pair's movements and technical analysis defines trends and helps to isolate turning points. Sentiment indicators are another tool that can alert traders to extreme conditions and likely price reversals, and they can be used in conjunction with technical and fundamental analysis.

Sentiment indicators come in different forms and from different sources. One is not necessarily better than another, and they can be used in conjunction with one another or specific strategies can be tailored to the information you find easiest to interpret.

How Sentiment Indicators Work

Sentiment indicators show the percentage, or raw data, of how many trades or traders have taken a particular position in a currency pair. For example, assume there are traders trading a currency pair; if 60 of them are long and 40 are short, then 60% of traders are long on the currency pair.

When the percentage of trades or traders in one position reaches an extreme level, sentiment indicators become very useful. Assume our aforementioned currency pair continues to rise, and eventually, 90 of the traders are long (10 are short); there are very few traders left to keep pushing the trend up. Sentiment indicates it is time to begin watching for a price reversal. When the price moves lower and shows a signal it has topped, the sentiment trader enters short, assuming that those who are long will need to sell in order to avoid further losses as the price falls.

Sentiment indicators are not exact buy or sell signals. Wait for the price to confirm the reversal before acting on sentiment signals. Currencies can stay at extreme levels for long periods of time, and a reversal may not materialize immediately.

"Extreme levels" will vary from pair to pair. Say the price of a currency pair has historically reversed when buying reaches 75%; when the number of longs reaches that level again, it is likely the pair is at an extreme, and you should watch for signs of a price reversal. However, if another pair has historically reversed when about 85% of traders are short, then you will watch for a reversal at or before this percentage level.

Commitment of Traders Reports

A popular tool used by futures traders to get a sense of sentiment is also applicable to spot forex traders. The Commitment of Traders (COT) report is released every Friday by the Commodity Futures Trading Commission (CFTC). The data is based on positions held as of the preceding Tuesday, which means the data is not real-time, but it's still useful.

Interpreting the actual publications released by the Commodity Futures Trading Commission can be confusing, and somewhat of an art. Therefore, charting the data and interpreting the levels shown is an easier way to gauge sentiment via the COT reports.

How to Read Commitment of Traders Reports

eunic-brussels.eu provides an easy way to chart COT data along with a particular futures price chart. The chart below shows the Daily Continuous Euro FX futures contract with a Commitment of Traders Line Chart indicator added. The COT data is not displayed as a percentage of the number of traders short or long, but rather as the number of contracts that are short or long.

Large speculators (green line) trade for profit and are trend followers. Commercials (red line) use futures markets to hedge, and, therefore, are counter-trend traders. Focus on large speculators; while these traders have deep pockets they can't withstand staying in losing trades for long. When too many speculators are on the same side of the market, there is a high probability of a reversal.

Over the time period shown, when large speculators were short about , contracts, at least a short-term rally soon followed. This is not a definitive or "time-less" extreme level and may change over time.

Another way to use the COT data is to look for cross-overs. When large speculators move from a net short position to a net long position (or vice versa), it confirms the current trend and indicates there is still more room to move.

While the cross-over method is prone to provide some false signals, over the years several large moves were captured using the method. When speculators move from net short to net long, look for the price of the euro futures, and by extension the EUR/USD, to appreciate. When speculators move from net long to net short, look for the price of the futures and related currency pairs to depreciate.

Futures Open Interest

The forex market is "over-the-counter" with independent brokers and traders all over the world creating a non-centralized marketplace. While some brokers publish the volume produced by their client orders, it does not compare to the volume or open interest data available from a centralized exchange, such as a futures exchange.

Statistics are available for all futures contracts traded, and open interest can help gauge sentiment. Open interest, simply defined, is the number of contracts that have not been settled and remain open positions.

If, say, the AUD/USD currency pair is trending higher, looking to open interest in Australian dollars futures provides additional insight into the pair. Increasing open interest as the price moves up indicates the trend is likely to continue. Leveling off or declining open interest signals the uptrend could be nearing an end.

Interpreting Open Interest

The following table shows how open interest is typically interpreted for a futures contract.

The data then must be applied to the forex market. For example, strength in euro futures (US dollar weakness) will likely keep pushing the EUR/USD higher. Weakness in Japanese yen futures (US dollar strength) will likely push the USD/JPY higher.

Futures volume and open interest information is available from CME Group and is also available through trading platforms such as TD Ameritrade's Thinkorswim.

Position Summaries by Broker

To provide transparency to the over-the-counter forex market, many forex brokers publish the aggregate percentage of traders or trades that are currently long or short in a particular currency pair.

The data is only gathered from clients of that broker, and therefore provides a microcosmic view of market sentiment. The sentiment reading published by one broker may or may not be similar to the numbers published by other brokers. Small brokers with few clients are less likely to accurately represent the sentiment of the whole market (composed of all brokers and traders), while larger brokers with more clients compose a larger piece of the whole market, and therefore are likely to give a better indication of overall sentiment.

Many brokers provide a sentiment tool on their website free of charge. Check multiple brokers to see if sentiment readings are similar. When multiple brokers show extreme readings, it is highly likely a reversal is near. If the sentiment figures vary significantly between brokers, then this type of indicator shouldn't be used until the figures align.

Certain online sources have also developed their own sentiment indicators. DailyFx, for example, publishes a free Client Sentiment Report combined with analysis and ideas on how to trade the data.

The Bottom Line

Forex sentiment indicators come in several forms and from many sources. Using multiple sentiment indicators in conjunction with fundamental and technical analysis provides a broad view of how traders are maneuvering in the market. Sentiment indicators can alert you when a reversal is likely near, due to an extreme sentiment reading, and can also confirm a current trend.

Sentiment indicators are not buy or sell signals on their own; look for the price to confirm what sentiment is indicating before acting on sentiment indicator readings. Losing trades still occur when using sentiment. Extreme levels can last a long time, or a price reversal may be much smaller or larger than the sentiment readings indicate.

Investopedia does not provide tax, investment, or financial services and advice. The information is presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Investing involves risk, including the possible loss of principal.

Fibonacci extensions are very popular indicators that are used by traders to establish certain profit targets. Many traders also use it to predict how far a price can go after a retracement. Traders also regard the extension levels as possible areas where the price of the currency pair, or other assets, can reverse. Extensions are used on the charts and mark the price levels which might be of significant importance. All of these different levels are based on the Fibonacci ratios.

Fibonacci is one of the most popular tools online. Using Fibonacci extensions is not hard and it can be used for different reasons. It is considered to be a universal trading tool that can be used for all timeframes and markets.

So, if you want to learn more about Fibonacci extensions and how they can be used by traders, follow our guide as we discover everything that there is to know about this trading indicator.

Fibonacci extensions definition &#; How do they work?

There is no specific formula for Fibonacci extensions. When you apply the extension to the chart, you will choose three points. After this, you will see the lines drawn on the chart, which are created according to the percentages of the move.

The first point that is chosen is the start of the move, the second point is the end of the move, while the third point is at the end of the retracement against that move. After this, the extensions are capable of projecting where the price might go next.

Forex Fibonacci extension is a great way to establish price targets and find projected areas of support and resistance levels when the price is in a condition where it is very hard to find the support and resistance levels using other methods. However, it should also be noted that Fibonacci extensions are areas of possible interest.

Thus, the price may not stop or change at the exact level, however, the area around the level is of great importance. So, let&#;s say that you are trading an asset with a long position and you see that a new high has been reached. In this case, you can use the Fibonacci extension and see possible directions the market might take. The same is true for those who have short positions. A great thing about this indicator is that it can be used in many different situations.

In the picture shown above, you can see Fibonacci Extention applied to the GBP/USD Chart. As you can see, there are three levels of Fibonacci Extension shown in the candlestick chart &#; ; ,0; and

Forex Fibonacci extension levels

Fibonacci extensions are very frequently used by traders around the world. They are most frequently used to determine take profit levels during a certain trend. In the market, you will come across different types of Fibonacci extension levels, however, the most commonly used ones are and

There are other common Fibonacci extension levels as well, such as %, %, %, and %. For many, Fibonacci extension levels Forex trading is a very important tool, as they believe that it can help them understand how far a certain trend can go after a pullback.

Traders can easily get access to the Fibonacci extension through different types of trading platforms. There is a Fibonacci indicator for MT4, MT5, cTrader, and many other trading platforms. This makes it easy for everyone to understand and for many traders, it is a key component of technical analysis.

How can Fibonacci extensions be calculated?

Before we learn how Fibonacci extensions Forex is calculated, let&#;s first understand how to calculate the basic Fibonacci sequence. To put it simply, it begins with 0 and 1, after which, it creates the third number by adding the two previous numbers. So, this is how it looks: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, and so on.

As you might notice, every number within the sequence gets closer and closer to % of the following number. On the other hand, every number in the sequence gets closer to the % of the number two positions after it, and % of the number three positions after it.

To understand the Fibonacci Forex ratio, learning the details about Fibonacci can be a great help. Another number that has an impact on the price action is %, although it is not a Fibonacci number. As for the Fibonacci number relationships above , they are calculated using the same methods, however, in reverse order.

Because of this, as we have already said earlier in the guide, the primary Fibonacci numbers above include %, %, %, %, and %. You can remember these numbers by simply adding to the standard Fibonacci levels. In most cases, traders use Fibonacci retracements for moves that are within the trend.

After this, they tend to switch to the Fibonacci extensions when the price goes through the % Fibonacci level of the base trend. In most cases, this is a sign that the reversal might be of a larger magnitude than the base trend was itself.

Fibonacci extension MT4 indicator

Most of the trading platforms, including MetaTrader 4, offer traders pre-installed Fibonacci extension indicators. It is very simple to use, and you can add it to your chart in just a few clicks. The first thing that you will have to do to add the Fibonacci extension to your chart is to go to the Insert, then go to Fibonacci, and choose Extension. After this, you will be able to choose the points that you want to and see the results in no time.

The picture above shows how you can add the Fibonacci Extention to your charts using MetaTrader 4. The same methods can be used for MetaTrader 5.

The first thing that you need to do to draw a Fibonacci extension is to find a trend you want to use as a base. After clicking the beginning and the end of the trend, you should be able to see the result.  Fibonacci extension MT5 works exactly the same way and can be used for various asset classes, on different time frames.

Final thoughts on trading Fibonacci Extensions

Fibonacci extensions represent a very important part of technical analysis. They are used by millions of traders and can be very helpful to identify possible support and resistance levels. Fibonacci Forex indicators can be easily accessed with the help of trading platforms. It is available on MT4, MT5, cTrader, and many others.

The best thing about Fibonacci extensions is that they can be used very easily by anyone. In just a few clicks it can be added to the chart, which makes it very helpful for traders of all backgrounds and experience.

Frequently Asked Questions on a Fibonacci trading indicator