Thread on fibs:

Part 1 - Fib extensions:

The way I use fibs and extensions differ from conventional textbook methods.

Fib extensions are ratios beyond 1 used to project targets for profit booking.

(1/n)

The main purpose of fib extensions is to forecast probable (emphasis on both words) areas of profit booking/correction in a script trading in unchartered waters (ATHs and lifetime lows)

(2/n)

Basically, they are used to find Ghost supports/resistances.

Fibonacci is a price based and a relative time based tool.

Meaning, the proper way to use this tool largely depends on the swing markers you use relative to the TF of your analysis and trading.

(3/n)

The primary ratios I use as part of extensions are 1.382 and 1.618.

Example 1 for broader price range swing:

(4/n)

Example for minor swing:
(5/n)