Part VIII. Advanced view on Fibonacci Extensions. Commander in Pips: Ok, here is one of your favorite “Brain cracking” parts of Forex Military School – “Advanced talks”. Today is about Fib expansions or extensions – call them, as you wish. For purposes of this lesson let’s mark extension with “A-B-C-D” letters, so that AB is the initial swing, BC-the retracement, CD –the expansion move. Pipruit: Ok, I hope I can survive after that… Commander in Pips: Yes, that’s correct. The target could be estimated with applying Fibonacci Extensions or Expansion – sometimes this tool is called like that. These are, in fact, the same. Pipruit: And why do we need that? Commander in Pips: Come on, don’t put yourself down. I even made colored charts, so it will be not so boring. We will discover some very useful things, and they will give you much advantage compared to other traders. Because, as we already know –the smaller the nuance the more important it is. So let’s start. We will build the current lesson in points and will give explanations and examples. Of course we can’t cover all details and nuances here, so I suggest that you ask more questions in this forum. Commander in Pips: Here our task is just to point out important details. Previously we’ve said that we will use retracement levels to open positions and extensions to exit from them, i.e. take profits. But also, you can use Fib retracement levels of higher time frames as profit objective points, because, as we’ve noted earlier – the higher the time frame, the stronger the level. Especially this rule is important for Confluences of higher time frames. 1. You may use Fib Retracement levels as profit taking objectives, but of higher time frames. Say, if you’ve entered short on daily time frame, then you may use as a target for profit taking Fib support from a previous swing up on weekly time frame. If this will be weekly Confluence support – much better. The same is true for any time frame pairs and down swings as well – weekly-monthly; daily-weekly; hourly-daily, 5-min-hourly - look at chart #1. Chart #1 EUR/USD Weekly t Pipruit: Cool! So, in a simple approach (without your brain cracking advanced parts) we use Fib retracement for entering and Fib extensions for exiting, right?