hi can someone please confirm that the Fibonacci extension is called the Fibonacci expansion in mt4?
Fibonacci extension and fibonacci expansion are opposites.
A fibonacci extension goes in the same direction as an ordinary fibonacci retracement. That is, it’s an extension of the fibonacci retracement.
A fibonacci expansion goes in the direction of the original price move (before the retracement). It projects probable price levels in the event of a continuation of the original move.
Pictures will make this easier to understand. (Click the images to enlarge them.)
Note: These images are from the MT5 platform, but the treatment of fibonacci retracements, extensions, and expansions is the same in both MT4 and MT5.
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Thanks for this simple but detailed explanation.
However, I’ve not been able to see the Fibonacci extension on my MT4. I can only see the Fibonacci Expansion
You could always put the 0 on A and the 100 on B that would be similar…! You can change the Fibo levels also.
Drabrah,
There is nothing to stop you adding further extensions and retracement levels to the fibonacci tool in mt4 and mt5. It is really easy to edit and there are videos on Youtube. That way you can have an mt4\mt5 fib tool that can simultaneously show retracements and extensions saving time and giving you the bigger picture instantly as soon as it is used the once…Give it a try…
I can’t find the Fibonacci extension tool on my mobile MT4. Is there any way I can add it to my tools?