The red bubbles and the red lines are showing how to use the fib extension tool
onto the chart.
The pink lines on the chart are indicating the tool.
PLEASE NOTE THAT THE 1.618% EXTENSION IS THE MORE CONSERVATIVE APPROACH WHEN TRYING TO FIND AN AREA WHERE PRICE MAY EXTEND TO.
The 1.618% is a fib level found from the fib extension tool.
THE 161.8% IS THE MORE AGGRESSIVE APPROACH WHEN TRYING TO FIND AN AREA WHERE PRICE MAY EXTEND TO.
The 161.8% is a fib level from the fib retracement tool.
What is the purpose of combining them?
The answer is to enter the trade off of the fib retracement tool. Exiting out of the trade off of the Fib extension tool.
When combining these tools this is considered fib ratio trading.
do they have anything over the ichimoku in the cmt?