Fibonacci retracement and trend extension: two points or three

Choose the tool and context

Open a loaded chart and check instrument and timeframe. Use the icon’s hover label to choose retracement or trend-based extension. The former needs two clicks, the latter three.

We call the anchors A, B and, for the second tool, C in click order. These are explanatory labels in this article, not letters you must find on screen. Start with one drawing to keep its anchors clear.

Check the two-point orientation

For retracement, 0% is at the second point B’s price and 100% at the first point A’s price. Reversing click order therefore reverses the level orientation.

In a fictional example, A = 100 and B = 120. Then 0% is 120, 50% is 110 and 100% is 100. On your chart, inspect the actual 0 and 100 labels rather than relying only on the direction between anchors.

Understand the third anchor

In the trend-based extension, the first two points define the A→B price difference. The third point C is where that difference is projected from. The 0% level passes through C’s price.

With fictional A = 100, B = 120 and C = 110, 0% is 110, 50% is 120 and 100% is 130. Moving C shifts the origin; moving A or B changes the projected difference. These figures explain geometry, not a future price.

Enter levels as percentages

Select the drawing using the selection arrow and open its settings. For a simple exercise enter 0; 50; 100 in the levels field, separated by semicolons. 50 means 50%, not the fraction 0.5.

Applying the edited list replaces that object’s levels. If an invalid-level message appears, correct the field in the dialog; the invalid list has not been applied. With no object selected, you edit defaults for new drawings instead.

Check and save the drawing

After applying, verify the tool type, two or three anchors and 0/100 labels. Price labels and line extensions are separate settings; they do not add another anchor.

Save the workspace and wait for confirmation. Reopen the same chart, instrument and timeframe, then check anchors and levels. Saving an appearance view does not replace saving workspace drawings.

Primary sources

Sources explain the mechanics and limitations; the editorial examples use invented numbers rather than market quotations.

• Student Wyckoff Pro: drawing tools

Sources checked: 2026-10-22

Continue with this topic

• Mark a chart level and area, then save your drawings