the hAnDbook oF teChnICAl AnAlysIs10.5.1 Calculating potential resistance via Fibonacci
upside extension Levels
When calculating Fibonacci upside extension levels, we usually select the trough
as the base for the extension. It is highly unconventional to use the peak as a base
for extension, in spite of giving the correct price levels for the upside extension.
For example, an upside extension percentage of 127.2 percent would be expressed
Figure 10.23 Fibonacci Downside Extension Support Levels below a Previous Sig-
nificant Trough.
Figure 10.24 Fibonacci Upside Extension Resistance Levels above a Previous Signifi-
cant Peak.