Using Fibonacci Extensions for Target Setting on BetPro Exchange

Trading on a betting exchange like BetPro requires solid strategies for determining entry and exit points. One advanced approach used by experienced traders is setting targets based on Fibonacci extension levels. This method applies the Fibonacci sequence in a creative way to identify potential areas of support and resistance.

What Are Fibonacci Extensions?

Fibonacci extensions build on the popular Fibonacci retracement strategy. While retracements use horizontal lines to highlight areas of likely reversal, extensions identify areas where a market move may continue towards.

The Fibonacci sequence – 0, 1, 1, 2, 3, 5, 8, 13, 21, 34 and so on, where each number equals the sum of the previous two – underlies these trading strategies. Values from this mathematically-derived series correspond to natural proportional relationships. Traders use these numbers to analyze markets and pinpoint significant pricing levels.

How Do You Calculate Fibonacci Extension Levels?

To employ Fibonacci extensions:

  1. Identify a market swing from peak to trough on the chart
  2. Use the vertical distance between the start and end points to make key measurements
  3. Apply the main Fibonacci ratios of 161.8%, 261.8% and 423.6% to project extension levels above the initial swing high point

Drawing vertical lines across the price bars at each extension creates potential profit targets. Values can project both upwards and downwards for long and short trades respectively.

Step-By-Step Calculation Example

Consider this straightforward example on BetPro Exchange:

  1. A selected price swing ranges from a high of $112 down to a low of $98
  2. The vertical distance equals $14 ($112 minus $98)
  3. The 161.8% extension level = 1.618 x $14 = $22.65
  4. Adding $22.65 above the peak of $112 gives an upward extension target of $134.65

Why Do Fibonacci Extension Levels Seem to Work?

While the underlying reasons behind Fibonacci exchange effectiveness remains subject to speculation, there are some compelling possible explanations:

  • The sequence corresponds to natural growth patterns and proportions found throughout nature and financial markets
  • Levels tend to align with support, resistance and continuation points due to self-fulfilling prophecy effects
  • Usage reinforces adherence due to the prevalence of Fibonacci analysis among active traders

Regardless of the science behind it, Fibonacci has proven itself empirically as an eerily reliable indicator across global markets. Traders continue spotting reversal or breakout signals from retracements and extensions with uncanny accuracy.

Key Benefits of Fibonacci Extensions

Setting targets based on Fibonacci extensions offers BetPro Exchange traders several advantages:

1. Indicates Areas Where Moves May Terminate or Accelerate

Extensions identify exact price levels where counter-moves often conclude and the previous trend reasserts. This allows traders to project areas where step-outs may occur or stall out.

2. Quantifies Profit Targets and Risk Levels

By projecting specific upside and downside targets, Fibonacci provides measurable points for taking profits or cutting losses. This application supports mathematically-grounded money management.

3. Complementary to Other Analysis Methods

EXTENSIONS combines well with technical studies on volatility, momentum, volume, chart patterns and Elliott Wave counts. Fib levels often align closely with signals from these complementary approaches.

4. Applicable Across All Financial Instruments and Timeframes

Fibonacci analysis applies equally well to forex, stocks, commodities and other markets. Extensions can pinpoint intraday, daily, weekly and monthly swing points according to the trader’s chosen timeframe.

Fibonacci Extension Strategy Steps

Follow these steps when applying Fibonacci extensions for resistance and support targets:

  1. Spot the Initial SwingIdentify a distinct trend reversal by connecting a clear price peak and trough.
  2. Draw Retracement LevelsPlot basic Fibonacci retracements between the swing points.
  3. Identify Entry PointsUse retracements to signal trades in the direction of the prior move. Entries often occur at 50%, 61.8% or 78.6%.
  4. Project Extension LevelsApply 161.8%, 261.8% and 423.6% values upwards from peaks and downwards from troughs.
  5. Manage PositionsTake partial profits at extensions in the trend direction. Move stops to breakeven at the 161.8% level.
  6. Confirm SignalsRequire supporting factors like overbought/oversold indications or volume spikes. Don’t rely solely on Fibonacci levels.

Tips and Best Practices

Keep these guidelines in mind when utilizing Fibonacci extensions for targets:

  • Customize levels based on historical volatility and recent price swings
  • Use multiple timeframe analysis to identify confluence across daily, weekly and monthly charts
  • Allow price to close decisively below or above levels before acting
  • Apply extensions in both uptrend and downtrend scenarios
  • Adjust extension lines on the fly by clicking and dragging as new swing points emerge
  • Focus on zones rather than exact mathematical prices

No single indicator like Fibonacci extensions can guarantee flawless signals. Maintain vigilant risk management for any trades based on projected support and resistance.

Example Trades Using Fibonacci Extensions

Consider how Fibonacci extension analysis assisted traders in securing profits from recent BetPro price action:

Uptrend Extension Targets

  • Price broke upwards from $102 and hit the 161.8% level at $114 and 261.8% target at $120
  • A short-term peak at $126 aligned closely with the 423.6% extension calculation

Downtrend Extension Targets

  • The decline from $144 stalled right at the 161.8% downward extension at $122
  • Price rebounded further after tagging the $116 zone highlighted by overlapping support

In both cases, Fibonacci projections helped traders establish profitable entry spots and set actionable price objectives.


Fibonacci extensions stand out as a versatile indicator for projecting areas of potential support, resistance and continuation. When used properly in conjunction with other analysis methods, extensions can optimize target setting across various trading timeframes. Give this approach a try next time you analyze swing points and trends on BetPro Exchange price charts.


What are the main Fibonacci extension levels?

The most commonly used Fibonacci extension ratios are 161.8%, 261.8% and 423.6%. These project external retracements at the golden ratio of 1.618 plus additional multiples.

Do I have to use all Fibonacci extension levels?

No, traders often customize the extensions they apply. Some plot just the 161.8% and 261.8% without the 423.6% for simplicity. Choose extensions subjectively based on trade style.

Can extensions only project upside price targets?

Extensions can calculate downside targets as well by applying ratios inverted from major price troughs rather than peaks. Think in terms of extensions rather than solely retracements.

What timeframe charts are best for Fibonacci extensions?

Extensions can apply to 60-minute, daily, weekly or monthly charts. There is no set ideal timeframe. Apply analysis across multiple time compressions to spot confluent extension clusters.

Is it best to trade the exact Fibonacci extension levels?

It’s smarter to trade the zones around extensions rather than precise ratios. Allow some price momentum beyond levels and target general areas using other indicators for confirmation.

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