Fibonacci Extension

Fibonacci Extension (Trend Based Fib Extension on Tradingview) works by connecting three pivots to produce external levels.

It is important to note that the Fibonacci Extension tool is only used to produce external levels.

While you have not yet reached the Elliot Wave module, this is also one of the primary tools for Elliot Waves.

As mentioned before in this series, Fibonacci Extension can be used as an additional confluence to identify entry and take profit levels.

Time Stamps

1:49 – LINK PREVIOUS COTW (DO NOT TRADE THIS)

16:27 – FIBONACCI EXTENSION + BOT ALGORITHMS 

• The majority of bot algorithms work off Fibonacci (many use a filter with MA’s and % changes in speed)
• Works well on smaller market cap altcoins which are primarily traded by bots
• 0, 0.5, 1, 1.5, 2, 2.5, 3, 3.5, 4, -0.5, -1, -1.5, -2, -2.5, -3, -3.5
• IMPORTANT: When you go from low to high you HAVE TO see the reaction off 0.5
• Select pivots that you see are respected (sometimes in confluence with the channel)

46:00 – Q&A

• This theory applies to IOTA, STRAT, WABI, WAVES, ICX, BAT, LINK, ZRX (the last three are very technical anyway, driven by fibs)
• As with everything you need confluence (and risk management)

1:08:27 – EXAMPLES 

1:18:40 – BTC TA and Q&A