hi,
i have spotted AB leg and want the BC retracement.
i use the fib tool (the one marked with black Arrow) and i get the retracement to 0.764 of AB
next i want to find the CD leg.
how do i find the extension of the CD?
if the D is where the red Arrow is (lost trade).
i used the fib tool drawn from (BLACK ARROW) B to C and got the extension to approximately 1.618.
however if i use the fib expansion (from chart elements) and draw it from A to B then down to C i get the D leg at extension 1.272
so which one is it?
i am very confused. i hope you understand what i mean