Pt II - Using Fibonacci Extension to Find Sell Targets

BITTREX:EBSTBTC   eBoost / Bitcoin
Please check out Part 1 on how to use fibonacci retracement to find entry levels.
This post will only make sense if you familiarize yourself with fibonacci retracement tool.

Now, supposedly, we have entered a trade using entry levels based on fib retracement, how do we know when to sell?
To answer this question, we can utilize the Fibonacci Extension tool.

**How to:
You will need 3 points to draw a fib extension.
You can obtain these 3 points by identifying wave 1 and 2.
-->Define wave 1-2
-->Set begging of wave 1 as first point.
-->Set end of wave one as second point.
-->Set end of wave 2 as third point.
*We are looking at a 4 hour chart of EBST/BTC*
Okay, so for this eBoost trade example example. I have entered a trade at around 3200 level.
How do I know where to sell?

For now, please ignore all the fibonacci tools and other annotations. Please focus on the candle sticks only: count wave 1-2-3-4-5 (They are labelled in blue text. The beginning of wave 1 is marked with an up arrow)

**You should ONLY move on if you can identify the 5 waves comfortably***

Now, we can start investigating the tools.
There are four tools you should familiarize yourself with on this chart. You can investigate them in the following order: (They are labelled by balloons)
a) fib retracement for wave 1 - used to find entry to LONG wave 3
b) fib retracement for wave 3 - used to find entry to LONG wave 5

c) fib retracement for the entire set of wave 1-2-3-4-5
(**ie. wave 1' - Since 1-2-3-4-5 can be viewed as subwaves of a larger leg 1' **)
-->We can use (c) to find entry to LONG wave 3'

d) fib EXTENSION of wave 1-2: used to find sell targets. The targets are connected fib. extension tool by the green boxes.

And there you have it, a 2-part simple introduction to using Fibonacci Retracement & Extension tools to find entry and target of a trade.
Thank you for your post.
So sell at 7000ish?
AlexCH AndrewHillc3
@AndrewHillc3, This is an educational post.
@AlexCH, Lol that was an educational question though, what would you do?
AlexCH AndrewHillc3
@AndrewHillc3, That is not an educational question at all. The answer has nothing to do with how you solve the problem.
DE Deutsch
EN English
EN English (UK)
EN English (IN)
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Startseite Aktien-Screener Devisen Signal-Finder Kryptowährung Signal-Finder Wirtschaftskalender So funktioniert es! Chartmerkmale Hausregeln Moderatoren Webseite & Brokerlösungen Widgets Stock Charting Bibliothek Feature-Anfrage Blog & Nachrichten FAQ - Häufige Fragen & Antworten Hilfe & Wiki Twitter
Profil Profileinstellungen Konto und Abrechnung Meine Support Tickets Support kontaktieren Veröffentlichte Ideen Followers Ich folge Private Nachrichten Chat Abmelden