Fibonacci Extension projects levels beyond the prior move — commonly 127.2% and 161.8% — to estimate how far a trend might run. Traders use extensions to set profit targets for impulse waves.
How traders use it
- 161.8% is a common target for wave 3 and wave 5.
- Extensions project targets; retracements time entries.
- Combine with structure to filter unrealistic targets.
See it in dtcharts
Label waves and Fibonacci levels on live charts in the dtcharts terminal with the Elliott Wave and Fibonacci tools.