How to Draw Fibonacci Projection Stock Indices Indicator Tool on Upwards Indices Trend
Indices Draw Fibo Projection for Indices Uptrend
We use Fibo Projection levels to estimate where the trend movement will reach. There are 2 oftenly used Fibonacci Projection levels: 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level, these Fibonacci Projection Levels are used for setting take profit levels.
On the Fibonacci Projection technical indicator example explained and illustrated below you can see that the Fibonacci Projection technical indicator is plotted along the direction of the trend, since the trend is up - the Fibonacci Projection technical indicator is drawn upwards.
These Fibonacci Projection zones are displayed as horizontal lines above Fibo Projection indicator, showing profit-taking areas. In the stock indices trading example explained below if you had used the 100.00% Fibonacci Projection level the you would have made good profit from this setup.
How to Draw Indices Trading Fibonacci Projection on Upwards Indices Trend - How to Draw Fibonacci Projection on Up Indices Trend
From the above Fibonacci Projection technical indicator tool example, the upward trend continued and both 61.8% and 100.00% Fibonacci Projection levels were all hit after which the stock indices trading price retraced again after getting to the 100.00% Fibonacci Projection level.
From the Fibonacci Projection technical indicator tool example above, after plotting this Fibonacci Projection tool there are 2 levels that are used to show the profit taking areas, these two Fibonacci Projection areas are plotted as horizontal lines across the stock indices chart marked as 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level.
Explanation of How to Draw Fibonacci Projection Zones on Stock Indices Charts
We use Fibo 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.
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.
How to Draw Fib Projection Stock Indices Indicator Tool on Upwards Indices Trend
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 Fibo Projection Levels - 61.8% and 100.0% Fibo Projection Zones.
