Fibonacci Expansion

Brief

Working with a Fibonacci expansion.

Details

Fibonacci expansion is similar to Fibonacci Retracement but, unlike it, is built based not on a trend line but on two wave lines drawn through three points (for example, the high, low and retracement high). The line connecting the first two points is taken as a unit interval, and Fibonacci expansion levels are drawn based on it from the invisible vertical line going through the third point: 0.618, 1.000 and 1.618.

It is supposed that the main price changes should occur near these levels. The levels can also be used as support and resistance.