I am using MT4.. I am having trouble with understanding Fibonacci extensions..
I learnt that there are two ways to draw fibonacci extensions.
1) Just draw fibonacci retracements in the opposite direction
2) Use fibonacci expansions..
But I am getting totally different lines in each way.. Look at the following charts.. The first chart has fibonacci extensions drawn with method one.. (The yellow lines). The second chart shows both. Why are they different? What am I doing wrong?