Many traders are saying that they can not use a Fibonacci extension tool on trading platform. But do not worry about because we can use any calculator to produce 61.80% value.
Below chart shows three white troops pattern and the high and the low point of each waveform continuously increase.
1st up wave : S-A-1
2nd up wave : 1-B-2
3rd up wave : 2-C-3
We will produce 61.80% of each up wave. Formulation is 61.80% = (High – Low) * 0.618 + Middle and result are like following.
And draw the 61.80% value line to the chart. Here red colored lines are 61.80%s of each wave.
Obviously, if a stock rises, it will not go down below 61.80% level of 3rd up wave. Because that point is a final support level on move up. Here 1458.
This is Amazon stock and progressing like this after three white troops formed. Today this met 1715.94/423.60% of 1st up wave.
So we are OK without Fibonacci extension function on our trading. Just use any simple calculator to find where are 61.80%s. Please apply this approach to your interesting stocks. This will help you to understand how stock form rising set up at initial phase.
If the practice of finding 61.80% continues, there will be no entry into falling stocks, nor will there be any catching up of stocks that have risen too much.
Just find where are optimal entry point using 61.80% and aggressively attack such target point!