Baby Pips School describes the Fibonacci Extension tool, and how to use it to set TP. But can’t find it in MT4. There is a Fib Expansion tool, but not a Fib Extension tool.
The way they describe it makes it sound like a standard tool that every platform has. All you do is click three times, and magic happens, apparently. But the one in MT4 only takes 2 clicks and it looks different.
Fib Extension and Expansion is the same thing, only different charting packages call them differently.
On MT4 it’s not very intuitive to plot them as you have to do the first two points like a regular retracement (click the first point, drag to the second one) and then pick up the third point and drag it to it’s place. You also may want to manually add more fib levels cause by default there’s only few of them.
Also, you can go through this video by Michael Boutros from DailyFX.com who is a hardcore user of extensions. It explains the basics of the two and how to use them.
I’m really glad you posted that video. It’s all clear to me now. And a lot of other good insights from Michael Boutros in the video too.
Seems there is a lot of different advice on which levels to set. In MT4 there are only 3 levels set. Baby Pips school sets more, but different levels, and Michael Boutro uses different levels too. I just set every level mentioned, and now I can barely see my chart, which obviously means I’m a cool trader now
