Fibonacci extension
Fibonacci extension is a charting tool that projects potential price levels beyond an earlier move, often using ratios such as 127.2% and 161.8%. A common method measures an initial move and projects a multiple of its length from the end of a pullback; these projections are not forecasts.
In a hypothetical move from 100 to 110 followed by a pullback to 105, projecting 161.8% of the 10-point move from 105 gives 121.18.
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