How to Analyze 61.8 Fibonacci Projection Level

We useFibonacci Projection levels to estimate where the trend movement will reach. There are 2 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 Technical 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 Trading Indicator is plotted using 3 chart points as shown on stock indices example explained below of how to plot the Fib Projection Indicator Tool.

The Fib Projection examples described below shows the Three Chart Points where the Fib Projection indicator is drawn, marked as Chart point 1, Chart point 2 and 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 displayed on the Fibo Projection Technical Indicator Tool example explained below.

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

Fibonacci Projection Level is the 61.8 Indices Trading Fibonacci Projection Level shown Below Used to Set Take Profit Indices Orders

Please note where these Fibonacci 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 Fibonacci Projection Levels - 61.8% Fibonacci Projection Areas.