Fibonacci extension

Fibonacci extension determines possible levels for closing a position to lock in profits whether going long or short. 161.8% or 432.6% are one of the common target numbers used by traders when looking at exiting their positions. Although, some investors consider using fundamentals in determining the best time to unload their holdings on a particular security. Technical traders often use this method to lock in extra profits before a possible reversal on a short term basis.

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