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Mastering Fibonacci - Part 3

Fibonacci Extensions: The Roadmap for Exits - How to map profit targets beyond prior highs and lows with precision

Most traders spend their entire careers obsessing over entries.
Few spend the same energy on exits.

That’s a costly mistake.

Because without a framework for taking profits, you’ll:

  • Sell too early and leave money on the table

  • Hold too long and watch profits evaporate

  • Or worse, turn winning trades into losing ones

This is where Fibonacci Extensions come in.


Time Stamps

00:00 Introduction to Fibonacci Extensions
02:09 How to Draw Extensions
05:04 Identifying Extension Levels
07:13 Further Analysis on Rocket Lab
09:21 Example: Uber Analysis
11:38 Key Extension Levels Overview
13:49 Why Extensions Work
15:36 Combining Extensions with Structure
24:27 Shorting with Extensions
30:29 Recap of Fibonacci Extensions


What Are Extensions?

If retracements tell us where price may pull back, extensions project where price is likely headed next.

They’re the roadmap beyond prior highs and lows… profit zones that traders, institutions, and algorithms alike respect.

The most common and powerful extension levels:

  • 127.2% → Shallow, often hit quickly

  • 161.8% → The “golden extension,” high-probability target

  • 200% & 261.8% → Stretch zones, common in strong or parabolic moves


How to Draw Them

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