The main purpose of this application is to help stock or forex traders in trading to determine the key levels of Fibonacci retracement or Fibonacci extensions / expansion by input high, low and custom values.
Fibonacci retracement is a term used in technical analysis thar refers to areas of support (price stops going lower) or resistance (price stops going higher). Fibonacci retracement levels use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before the trend continues in the original direction. These levels are created by drawing a trendline between the high and low and then dividing the vertical distance by the key Fibonacci ratios. Fibonacci retracement is a very popular tool used by many technical traders to help identify strategic places for transactions to be placed, target prices or stop losses. After a significant prices movement up or down, the new support and resistance levels are often at or near these lines. Fibonacci retracement price levels can be used as buy triggers on pullbacks during an uptrend.
The general idea of Fibonacci extension is to help traders to determine price targets on a trade at Fibonacci Price extension Levels.