Price Extensions are used to specify horizontal lines at price levels which are determined to be probable values of support and resistance based on the market's previous range, and a third extension point.
You have complete control over which percentages are used in the Price Extension tool, and the colours of each of the Price Extension lines. Common values are the Fibonacci sequence 38.2%, 50% & 61.8%. In this example, the distance between points A and B has been replicated from point C, with common Fibonacci levels and also 100%:
Note: Applying the Price Extension to your chart requires three clicks, indicated by points A, B and C in the chart above
With the tool selected, left-click once on the chart to choose a starting point (A). Left-click on the chart again to select the end point (B), and left-click on the chart one last time to select the extension point (C). With all three points selected, move your mouse to the left or right to extend the level lines, then left-click one last time to anchor the tool to the chart.
Actions & Properties
Add New Level: Allows you to add a new Price Extension level or edit an existing level in the tool. See Levels in the Properties section below for more information.
Add Price Alert: Selecting this action will set a Price Alert at the value of the selected Price Extension Line. For information on Price Alerts, please click here.
Add to Toolbar: Click this action to add the selected Price Extensions to your custom toolbar.
Apply Settings to All: When multiple Price Extensions tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as hiding or adding levels- as this allows all the other Price Extensions tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected Price Extensions, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool to the background.
Move to Front: If the lines of the tool are displaying behind other tools or indicators on the chart, clicking this action will bring the lines to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the Price Extensions, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the Price Extensions Properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Price Extensions to a chart, the tool will display using the new settings.
Delete: Delete the Price Extensions from the chart.
Tool Name: Allows you to adjust the name of the tool, as it's displayed in the Structures Panel.
Levels: Click on this option to display the different Price Extension levels.
To add a new level to the chart, left-click on the blue + button and enter the values as needed.
- Value - Sets the Fibonacci value for the Extension line. To change the value amount, click in the field and enter the new value.
- Line Style - Sets the line type, thickness, colour and transparency of the Channel lines.
- Visible - To hide a level, deselect the check box with the green tick.
Extend Left: Check this box to extend the Extension lines to the left.
Extend Right: Check this box to extend the Extension lines to the right.
Show Prices: This provides an option to show or hide the price value for each extension line.
Show %: This provides an option to show or hide the percentage value for each extension line.
Label Alignment: Can elect to display the Price Extension labels in different positions in relation to each Price Extension line, there are 8 options available: Top Left, Top Right, Centre Top, Bottom Left, Bottom Right, Centre Bottom, Centre Left, Centre Right.
Font Size: Allows you to adjust the size of the text displayed for each label used in the Price Extensions. Moving the slider bar to the right increases the font size.
Scale Mode: The Price Extensions can be displayed using the default Price mode or set to use the Percent mode. The Percent mode calculates percentage retracements based on the Logarithmic Scale, not the linear scale. For example, a 50% retracement of a move from 300 to 500 using a linear scale (Price Mode) is 400. The scale mode allows for a logarithmic calculation to be used. Using the log scale the 50% retracement of a move from 300 to 500 is 387.30. The 50% level, when using the new scale method could also be referred to as the Geometric Mean between the two selected price levels. For the Percent mode to function, the chart must be set to Logarithmic Scale.
Show ABC Tags: Applies A, B, C labels to the anchor lines placed on the chart.
Anchor Lines: Deselect this checkbox to hide the anchor lines on your chart.
Anchor Line Style: This option expands to show the following:
- Line Style - The Line Style property allows you to adjust the type of the anchor lines displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
- Line Width - Allows you to adjust the width of the anchor lines. Moving the slider bar to the right increases the thickness of the line.
- Line Colour - Allows you to select the colour of the anchor lines. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.
- Transparency - Use this slider bar to adjust the transparency of the anchor lines. Moving the slider to the left will increase the transparency of the tool.
- Visible - Un-tick this checkbox to hide the anchor lines from the chart.
Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.
For additional information on editing the levels of this tool, click here.