IMUGENE CHART. TA only, page-17678

I use fibs for a specific move relative to the time frame. I'll use your example posted: You've got point A at 0.015 and B at 0.625 - that's the entire range of IMU. But even on a monthly chart you have major retraces within the A & B. Likely in IMU's case if you want to use 0.015 as A, you will need a yearly chart with a B way higher many years from now so that these retraces look like blips on the radar.(like my red fib shown below)

If you compare that to to the one I am using, you will see my A point is 0.092 after a 4 month consolidation/distribution range, and my B is at the end of that bull run at 0.495. All moves after that starting with the MSCI inclusion validated those levels as the one the market is watching, and as recent as today (50% @ 0.295). Sometimes an easy way to see where to apply a fib is with a line chart, as shown below. The up move does not contain a major retrace and followed a long range. The down move was from top to bottom because it did not contain a major retrace, just a few 'blips'.



As for extensions, they are generally used on smaller fibs for targets(D1, D2 etc) and for overhead resistance when there is open sky. They are also good for in-between levels on longer moves.(fibs within fibs) The run up to 0.495 last year was a good example of extensions in action, time after time when there was zilch above us on the chart, we would tag an extension and stop. To many this seemed like I was predicting the impossible, however it was just fib extensions as shown through analysis. This is not IMU specific, this is financial markets across the board, statistics and anything mathematical. The reason I say use best fit is that you can apply fib 'rules' as to where and how to place them and you might be spot on - 100% correct, however the rest of the market is looking at a different placement and so with fibs it is better to be wrong with everyone than technically 'right' and have your levels ignored. Best fit is identified by seeing price match up with your levels on multiple points, and also your fib matching up with smaller and larger fibs. So many times on that run up an extension I had used became a retracement level of a larger time frame further down the road. The target of 0.65 iirc was levels of 3 different fibs all coinciding within a pip or 2.


Also I want to query how you are drawing your fib as your levels are upside down for a bull fib. Did you go bottom left to top right? Or did you go to right to left? You want your 1(100%) at the bottom, as in if it is gets there it has retraced 100%. You want your 38.2 above the 50 then both above 60, as in if it is retraces a bit it's 38.2%, retraces half way it's 50%, retraces a lot it's 61.8% (of the total move). The levels will be identical on the price, but just labelled the other way. It matters more if you use the minor fib levels (I generally don't). How it works appears is how it should look four a bear fib. Top left down to bottom right, but weather bull or bear always left to right.