Fibonacci Expansion
Fibonacci expansion is used for resistance expected according to a tenderncia. In other words, determine the rehash "stations" or "target prices" which will follow a trend confirmed price. The Fibonacci expansion consists of two straight 3-point (make an example bullish). A minimum, then a maximum, a withdrawal of the uptrend to a new low. Then extrapolate the possible resistance or price targets given by the following Fibonacci numbers (three numbers are the most used): 61.8 - 100 to 161.8.
The following example shows a clear example of a Fibonacci expansion objectives by identifying 3 prices.
Generally Fibonacci expansions are several temporary resistance, and we emphasize that the main problem is to draw, since it is difficult to determine which minimum should be used: Some recommend at least last the child and other minimum of the last 30 days .
Finally, we can say that the Fibonacci expansions are far from accurate, but can become a very useful guide to predict possible resistance to the trend tundra.
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