How to Analyze 61.8 Fibonacci Projection Level

We useFibonacci Projection levels to estimate where the indices trend movement will reach. There are 2 important Fibonacci Projection levels; 61.8% and 100% Fibonacci Projection Levels, 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 Fibonacci Projection Indicator.

To draw Fibonacci Projection levels on the stock indices chart we wait until the stock indices price retracement is complete and the stock indices price starts to move in the original direction of the Indices trend. Where the stock indices price retracement reaches is used as chart point 3. Fibonacci Projection Indicator is drawn using three chart points as shown on the stock indices trading example explained and illustrated below of how to draw the Fibonacci Projection Indicator Tool.

The Fibonacci Projection example explained and illustrated below shows the 3 Chart Points where the Fibonacci 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 shown on the Fibonacci Projection Indicator Tool example explained and illustrated below.

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

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

Please note where these Fibonacci Projection levels are drawn - Fibonacci Projection levels are drawn above the Fibonacci indicator, these are the chart points where a indices trader will set the take profit orders using these Fibonacci Projection Levels - 61.8% Fibonacci Projection Levels.