Fib Extension Indicator: Formula, Settings and How to Read It
Fib Extension projects levels beyond the terminal extreme of a swing leg, in the direction the leg travelled. It uses the same automatic leg detection and the same lookback as the retracement indicator, so both describe the same swing when enabled together.
Senzoukria · Indicators · Updated September 2026
Fib Extension ships with the Senzoukria desktop app, in the VWAP & bands group of the indicator catalogue. It is drawn on the price chart.
What Fib Extension measures
On a rising leg, levels are computed as the low plus a ratio of the leg's range, which places them above the high; on a falling leg the construction is mirrored below the low. The ratios are 127.2%, 161.8% and 261.8%, which are the square root of 1.618, the golden ratio itself, and its square. Each level is therefore a multiple of the measured swing projected forward from its origin, not a level price has already traded at. As with the retracement, an incomplete window or a zero-range window produces no levels at all.
The formula, as implemented
This is not a description of how the indicator is usually defined elsewhere — it is what the shipped code computes, documented next to the implementation:
Extensions de Fibonacci sur la MÊME jambe que `fibonacci-retracement` (même détection, même lookback) — mais projetées AU-DELÀ de l'extrême terminal, dans le sens de la jambe : • jambe HAUSSIÈRE → niveau(p) = low + p·(high − low), p > 1 ⇒ au-DESSUS du sommet (objectifs de continuation haussière) ; • jambe BAISSIÈRE → niveau(p) = high − p·(high − low) ⇒ sous le creux. Ratios 127.2 % (= √1.618), 161.8 % (= φ), 261.8 % (= φ²) — le jeu d'objectifs standard. Mêmes règles de dégradation que le retracement. Défaut N=100 (identique, pour que les deux indicateurs activés ensemble décrivent la même jambe).
How to read it
- Read extension levels as distances, not destinations: 161.8% means price would have travelled 1.618 times the detected leg from its origin.
- The nearest level, 127.2%, is only slightly beyond the swing extreme, so it is reached on any modest continuation. The distance between 161.8% and 261.8% is much larger and represents a very different move.
- Extensions and retracements are complementary on the same leg: one measures what has been given back, the other what continuation would look like. Enabling both on the default lookback keeps them consistent.
- Projections are recomputed rather than fixed. As soon as the measured range changes, every level is rescaled by the same proportion, so the three lines move together and keep their spacing ratio.
- Nothing in the projection observes order flow. Whether a level matters depends on what trades and what rests there, visible in the footprint and the heatmap.
Parameters and defaults
Lookback defaults to 100 bars, the same default as the retracement indicator so that the two agree on the leg, and accepts 2 to 2000. Widening it captures larger swings and pushes the projections further away; narrowing it produces closer, more frequently reached levels. The three ratios are fixed.
| Parameter | Type | Default | Range |
|---|---|---|---|
| Lookback | number | 100 | 2 – 2000 |
What it does not show
Extension levels are geometric projections of a past move: they are not forecasts and carry no probability. The leg they project from is selected by window extremes, so a spike inside the lookback can define a leg no trader would have drawn. Because the window slides, projections are recomputed as the chart advances and can move substantially between sessions. And a projection placed far beyond current price may never be tested at all — reaching it is not part of what the indicator measures.
Using it in Senzoukria
Add it from the Indicators panel of any footprint chart or candle chart. It runs on futures data from Rithmic or Databento and on crypto pairs from Binance and Bybit, on the same engine — the calculation does not change with the venue, only the data feeding it does. Market data subscriptions are billed by the provider, separately from the app.
Related indicators
- Rolling VWAP — VWAP & bands
- Session VWAP + σ bands — VWAP & bands
- Anchored VWAP (session open) — VWAP & bands
- Anchored VWAP — VWAP & bands
- Fibonacci Pivots — VWAP & bands
- Woodie Pivots — VWAP & bands
See the full indicator library, or start with the order flow guide if you are new to reading aggression, delta and absorption.
Frequently asked questions
- What are the 127.2%, 161.8% and 261.8% extension levels?
- They are projections of the measured swing beyond its terminal extreme, at 1.272, 1.618 and 2.618 times the leg's range. The values come from the golden ratio: 1.618 is φ, 2.618 is φ squared, and 1.272 is the square root of 1.618. They mark distances travelled, not levels with any intrinsic support or resistance property.
- What is the difference between Fibonacci extension and retracement?
- Retracement levels sit inside the swing and measure how much of the move has been given back. Extension levels sit outside it, in the direction the swing travelled, and measure continuation beyond the extreme. Both are built from the same automatically detected leg, so they describe one move from two sides.
- Do extension levels update when price makes a new high?
- Yes, if that new high changes the extremes inside the lookback window. The leg is re-detected from the window's highest high and lowest low, so a new extreme redefines the range being projected and all three levels move. Using a longer lookback makes this happen less often.