Fibonacci extensions

[poeds]

can somebody advise me, fib extensions are doing my head in
i cant get the knack of drawing them and there doesnt seem to be any help re them on NT
is there a difference between the fib extension drawing tool and just adding the negative fibs to the retracement tool?
i guess there must be or it wouldnt be a separate tool
is there a vid somewhere on the extension tool?

thanks for any tips

[NinjaTrader_Matthew]

Hello poeds,

Thank you for your post.

The Fibonacci extension uses there anchor points to determine the fib levels, while the Fibonacci retracement only uses two anchor points. The calculation would be different depending on where you placed these anchors.

Can you please clarify what you are having issues with? We do not have any eductional videos on how to trade, however you might want to check with one of our Education Partners for further assistance:

http://www.ninjatrader.com/partners#Education

[poeds]

thanks for replying so quickly
i have looked at various vids about this although not with NTs specific tool
what am i supposed to do with the 3rd anchor?
i always stick it on top of the 2nd but that just makes the extension tool the same as the retracements tool with negatives added
its a mental block i need explained idiot style

[NinjaTrader_Matthew]

Hi Poeds,

I'm sorry, but I cannot offer trading advice - but basically, the extension tool will measure three points rather than the 2 you are used to using. I've attached a screen shot of an example of how the fib extension may be used. I have circled the 3 anchor points to better illustrate how this is being plotted.

Hopefully another forum member will step in here to further explain the differences between the Fib retracement and Fib extension. I

In the meantime, I would suggest visiting www.investopedia.com and reading their articles on Fib extension and Fib retracement

[poeds]

hi thanks again

yes i read this b4

http://www.investopedia.com/terms/f/...extensions.asp

as far as i can see its just adding negatives to a retracement tool

the chart you were kind enough to put up is something different

[koganam]

Originally Posted by poeds

thanks for replying so quickly
i have looked at various vids about this although not with NTs specific tool
what am i supposed to do with the 3rd anchor?
i always stick it on top of the 2nd but that just makes the extension tool the same as the retracements tool with negatives added
its a mental block i need explained idiot style

The Fibonacci retracement measures the end of a thrust back into the initial trust, so you need the 2 anchor points of the initial thrust to measure and from which to calculate.

The Fibonacci extension is a tool to draw a second trust, using the first thrust as a measure, off an arbitrary retracement.

Think of a thrust AB, then a retracement, BC, then another thrust in the original direction CD.

The Fibonacci retracement will make measures of BC, using AB as a reference, while the Fibonacci extension will make measures of CD, using AB as a reference.

[poeds]

hi koganam

thanks for the explanation, that makes sense to me
could you look at this link please, i would appreciate your comments

http://www.investopedia.com/terms/f/...extensions.asp

it looks like the explanation there is incorrect as the measure of the extension seems to be taken from b there is no pullback to c.

did i miss something again?

[koganam]

Originally Posted by poeds

hi koganam

thanks for the explanation, that makes sense to me
could you look at this link please, i would appreciate your comments

http://www.investopedia.com/terms/f/...extensions.asp

it looks like the explanation there is incorrect as the measure of the extension seems to be taken from b there is no pullback to c.

did i miss something again?

In a grammatical sense, what is described there is certainly an extension.

However, in the world of Technical Analysis, a term may have a restrictive, specific meaning that is more restrictive than its grammatical meaning might suggest.

Here is a good reference for you: http://www.fibonaccigenius.com/fibon...xtensions.html

And here is the google search: http://www.google.com/search?aq=f&so...acci+extension

[poeds]

thanks very much for all that koganam, i have it straight now

[laredo78676]

How do I set a default or a template on a fib extension property window?

[laredo78676]

I cannot locate the False box on removing text writings on the chart of buys and sells?

[poeds]

right click inside the box

[NinjaTrader_Matthew]

Hello laredo78676,

You can save your Fibonacci settings by right clicking on the Fibonacci properties and selecting 'Manage Templates'.

If you would like to save your settings as default, please right click to open the Fib properties and save your settings under the name existing template named 'Default'.

Please see our NT V7 'Fibonacci Drawing Object Templates' Help Guide Video for more information:

http://www.ninjatrader.com/support/m...-Templates.htm

Please let me know if you need further assistance.

[laredo78676]

Am I able to change the Defualt setting on the fib tool.I can reset it and "apply" it but cant seem to change the default on the free version??

[NinjaTrader_Matthew]

laredo78676,

If you would like to save your settings as default, please right click to open the Fib properties and save your settings under the name existing template named 'Default'.

Please see the Understanding Fibonacci drawing object templates help guide topic:

http://www.ninjatrader.com/support/h..._tools__ob.htm