fibTrendExt

The Fibonacci Trend Extension is like a forward-looking version of retracement. Instead of just measuring the pullback between two points, it projects Fibonacci levels beyond your chosen move. Traders use it to spot potential profit targets or continuation levels in the direction of the trend.

Think of it as:

• Retracement → “How far back might price pull?”

• Trend Extension → “How far forward might price go?”

Syntax

fibTrendExt(originPoint, targetPoint, anchorPoint, styles?)

Parameters

• originPoint: The first anchor of your trend move. Usually the start of a swing. Build with newPoint(time, price) . Example: newPoint(time(40), low(40)).

• targetPoint: The second anchor. Typically the end of the initial swing. Build with newPoint(time, price) . Example: newPoint(time(25), high(25)).

• anchorPoint: The third point, used to “project” the extension from. Often a retracement low/high after the move. Example: newPoint(time(10), low(10)).

• styles (optional) Customize the look:

  • linecolor: color of the extension lines (e.g., color.green)

  • linewidth: thickness of lines

  • fillBackground: true/false for shading

  • showPrices: display price labels on levels

  • showCoeffs: display % ratios (like 161.8%, 261.8%)

Return Value

• string — The unique id of the extension drawing.

Example

This script plots a green Fibonacci Trend Extension every 30 candles. We take three clear swing points to define it:

//@version=1
init = () => {
    // Place the drawing on the price chart
    indicator({ onMainPanel: true, format: 'inherit' });
};

onTick = () => {
    // Every 60 candles, draw a new Fibonacci Trend Extension
    if (index % 60 === 0) {
        // 1) Starting point: 45 candles ago, at its low
        const origin = newPoint(time(45), low(45));

        // 2) Swing end: 28 candles ago, at its high
        const target = newPoint(time(28), high(28));

        // 3) Anchor: 12 candles ago, at its low (used to project forward)
        const anchor = newPoint(time(12), low(12));

        // Draw the extension
        // - Green color
        // - Thicker lines for visibility
        // - Show both % ratios and prices
        fibTrendExt(
            origin,
            target,
            anchor,
            { linecolor: color.green, linewidth: 2, showPrices: true, showCoeffs: true }
        );
    }
};

This will draw green extension levels above the original swing, often landing around 161.8%, 261.8%, etc.

Result

Tips

• Use it for profit targets in trending markets.

• Combine with retracements — retracement gives entry zones, extension gives exit zones.

• The 161.8% level is a favorite among traders as a strong target.

Warning

• If your three points are too close or random, the projection won’t make sense.

• Extensions are not guarantees — treat them as guides, not certainties.

Good Practice

• Choose major swing points for origin/target to get reliable projections.

• Keep your extension colors different from retracements (e.g., green for extension, yellow for retracement).

• Update instead of stacking — use the id to refresh the drawing as new pivots form.