Fibonacci Expansion
Fibonacci expansion is a technical tool that is plotted between three points on the price chart. point A is the start of wave 1, point B is the end of wave 1 and point C, the end of wave 2. The Fibonacci expansion tool displays three lines by default at 61.8%, 100% and 161.8% the length of wave 1 (i.e. the distance between point A and point B). These lines (i.e. expansions) are drawn starting from the end of wave 2 (i.e. point C). They act as potential resistance levels for the end of wave 3.