Fib Extensions

i wont rely on them for the targets .Its a good way of knowing where the resistance and supports will lie in the future if you wanted to take profits as such.
I personally dont use them for targets as there are better formations that predict targets than a fib extensions but some people do and if it works for you then good.

How do you decide on which extension to target?
150 - 161.8 - 200 - 261.8?
Is it a question of just monitoring it at each level to see if it breaks through.
On the AMC chart, I am looking for extensions from 4.25p based on the 18p move down to that level from the 22.25p intraday high in 2011.

This would produce the following -

29.12p (138.2%)
31.25 (150%)
33.37 (161.8%)
40.25 (200%)
51.37 (261.8%)

I guess it's hard to reconcile TA on such huge moves, particularly if the fundamental picture changes so dramatically.
I can think of shares like Norseman Gold, Beowulf and Solomon Gold who saw jumps from 3-5p to 60-80p.
Might revisit their charts and do a bit of retrospective analysis.

Thanks remo.

hi bonobo77
ive done a video on this in the learning section.
check it out.
chartsview.co.uk/learning/video-fib-extensions.html

thats the way i do it.

Hi Guys,

As per my post on AMC (Amur Minerals) in the General Section, I am interested in getting some advice on how to reliably plot FIb extensions should a share break into blue sky territory. I know that Jacko 'famously' did just that for GKP in advance of the move to 450p, and I'm always interested in learning the pros and cons of trying to plot blue sky targets on a break out.

Thanks in advance.