I just reviewed my notes on Fibonacci and realized that many people get stuck only on the basic levels. The truth is, if you really want to make serious use of this tool, you need to explore what comes after.

Everyone knows the classic levels: 23.6%, 38.2%, 50%, 61.8%, and 78.6%. But the game changes when you understand how to work with Fibonacci levels above 100. That’s where things get interesting for those looking to identify real profit targets.

Let me explain what works in practice. When the price breaks through an important level and you want to know how far it can go, Fibonacci extensions are your friends. We’re talking about 127.2%, 161.8%, and 261.8%. These Fibonacci levels above 100 act as points where the market often encounters resistance or consolidates before continuing.

The way I use it is simple: first, identify the main trend. Then draw the retracement from the low to the high. But here’s the key difference — I extend the levels beyond 100% using the extension tool. When you do this, you can visualize where the price is likely to seek profits or reverse.

Projections work similarly but with a slightly different logic. You take the length of the initial move and project it from the end of the retracement. The Fibonacci levels above 100% you’ll use here are 161.8% and 261.8% of the original move. It’s like predicting the next move based on the previous pattern.

There are also Fibonacci fans, which are diagonal lines emanating from a point. They work well for identifying dynamic support and resistance. And time zones, which use the sequence 1, 1, 2, 3, 5, 8, 13 to forecast when reversals might happen.

But here’s the important part: Fibonacci alone isn’t enough. I always combine it with other tools. If the 200-day moving average is above the price in an uptrend, I feel more confident about the levels. If the RSI is in neutral territory when the price approaches a Fibonacci level above 100, that usually means there’s still room for movement.

Volume also speaks volumes. When I see the price approaching a key level and volume increasing, that’s a strong sign that that level will hold.

Let me give you a real example of how this works. Imagine a stock that rises from 50 to 100. You draw the retracement and see it pulls back to 80 at the 61.8% level. That’s your entry point. Then you extend the levels and see that the strongest resistance is at 150, the 161.8% extension. You set your stop-loss just below 78.6% and your target at 150.

While monitoring, you check the RSI — it’s neutral, a good sign. Volume increasing, even better. The price rises, and you adjust your stop to lock in profits. When it hits 150, you exit and realize the gain.

What many people don’t realize is that understanding Fibonacci levels above 100 transforms how you see price targets. It stops being guesswork and becomes market mathematics.

If you’re just starting out, stick to the basics. But if you’re experienced, spend time studying extensions and projections. The difference between a consistently profitable trader and one who’s lost is exactly this ability to read where the market will go after breaking through key levels. Gate has good tools to draw these levels — it’s worth exploring.