Fibonacci Extension

Fibonacci Extension
As the name suggests, it is not different from the study of Fibonacci but it can be explained as a way for raising the use of Fibonacci retracements with time. This is made by making a retracement chart for the market. It is done by making a linefrom the top part to the bottom part and then cross the vertical lines with a horizontal one in which they are drawn with the help of points that Fibonacci determines. Once a general retracement is made, an extension can be made by extending the extra horizontal and vertical lines with the help of lower or higher cost levels that corresponds to the great Fibonacci percentages. These extensions are utilized for bordering the resistance level and future support for the market when the level of cost crosses the first retracement resistance and the support level.