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