How to Analyze 61.8 Fibo Projection Level

We useFibo Projection levels to estimate where the trend movement will reach. There are two important Fibo Projection levels: 61.8% and 100% Fibo Projection Areas, these are used for taking profit.

61.8 Indices Trading Fib Projection Level

61.8 Indices Trading Fib Projection Level is the most commonly used indices profit taking level when trading using the Fib Projection Indicator.

To draw Fibo Projection levels on stock indices chart we wait until the stock indices trading price retracement is complete & stock indices trading price starts to move in original direction of the Indices trend. Where the stock indices trading price retracement reaches is used as chart point 3. Fibo Projection Indicator is plotted using 3 chart points as shown on stock indices example explained below of how to plot the Fib Projection IndicatorTool.

The Fib Projection examples described below shows the Three Chart Points where the Fib Projection indicator is plotted, marked as Chart point 1, Chart point two & Chart point 3.

Chart point 1 is where the indices trend started, Chart point 2 is where the indices trend pulled back and retraced and Chart point 3 is where the stock indices retracement reached as portrayed on the Fibo Projection Indicator Tool example explained below.

The First Fib Projection Level is the 61.8 Indices Trading Fibonacci Projection Level shown Below Used to Set TP Indices Orders

Fibo Projection Level is the 61.8 Indices Trading Fibonacci Projection Level shown Below Used to Set TP Indices Orders

Please note where these Fibo Projection areas are drawn - Fibo Projection areas are plotted above Fibo indicator, these are chart points where one will set take-profit orders using these Fibo Projection Levels - 61.8% Fibo Projection Areas.