Hi, I started reading the classes a couple of weeks ago and I as go through them I try to work out some examples in MT4. I am unable to find a way to do Fibonacci extensions. I have searched the forums here and some are saying that Fibonacci expansions are the same as Fibonacci extensions, while others are saying that these are different things. I also read a post saying that you have to grab the third point on the Fibonacci expansion and drag it to where it should be. I even read a post saying that you could just add Fibonacci extension levels to the Fibonacci retracements that you already have by editing the Fibonacci retracement tool and adding more values. I understand the concept of Fibonacci extension levels, but I have no idea of how to do them correctly in MT4. Thanks for any help.

MT4 comes with a fib tool. If you just play with it you’ll know how to do it.

Are you asking what the fib levels are? They are various roots and powers of the golden ration 0.618. Typical fib levels are 0.24, 0.38, 0.62, 0.79, 1.27, 1.62, 2.62, and 4.24. Most people also throw in 0.5, 1.0 and 2.0.

Thanks for your help. I am asking specifically about Fibonacci extension levels. I already know how to get Fibonacci retracement levels using MT4. I didn’t find any specific Fibonacci extension tools in MT4.

The same tool gives you the extensions as well as the retracements. The extension levels are the numbers greater than one. Are you drawing the fib across the range from zero to one? 1.0 is the same as the 100 level as drawn on the chart since MT4 gives them as percentages (but not in the indicator options). Hope that helps.

Are extensions the same as projections?

Yes both extensions and expansions are because you are extending/expanding a measured range of pips ( from A=0 to B=100%) and projecting it forward into time, either up or down from somewhere.

The difference between expansion and extention, in my mind, is the “somewhere” you are projecting this range “from”. You can attempt to project where price will go by either [B]expanding[/B] it from a retracement point C (the 3rd point) which is usually inside the original range…or, you can [B]extend[/B] it beyond the end of the original range B, only requiring the original 2 points.

In other words too…[B]expandsions[/B] are like duplicating where price could go if it equalled the length of the original range, but from a different starting price…further to that, one can use both the retracement and extension levels of that original move too . [B]Extensions[/B] are measuring how far past the original range move price could go.

Hope that helps

Aha. Captain Obvious strikes again! I usually just use a calculator.

You can place Your fibonacci to nearly any point on the chart. Just stick to Your rule about it, on which term You are going to use it. So use it on forexample daily chart, than select the lenght of the time You are checking. And dont really rely on the fibonacci, that is just an indicator nothing else.

First off, sorry for assuming you were clueless in my earlier posts when obviously you weren’t.

Good news, there is a fib expansion tool in MT 4 that does exactly what you want. Just go to the customization window and add it. It is really cool!