Gotta always keep in mind “Zombieland Rules of Survival #22”:
When in doubt, know your way out!
Let’s start with an example of an uptrend.
In an uptrend, the general idea is to take profits on a long trade at a Fibonacci Price Extension Level.
Fibonacci Extension Levels
You determine the Fibonacci extension levels by using three mouse clicks.
First, click on a significant Swing Low, then drag your cursor and click on the most recent Swing High.
Finally, drag your cursor back down and click on any of the retracement levels.
This will display each of the Price Extension Levels showing both the ratio and corresponding price levels.
Pretty neat, huh?
Let’s go back to that example with the USD/CHF chart we showed you in the previous lesson.
The 50.0% Fib level held strongly as support and, after three tests, the pair finally resumed its uptrend. In the chart above, you can even see the price rise above the previous Swing High.