How to Draw Fib Projection Indicator on Upward Trend
Indices Draw Fibo Projection for Uptrend
We use Fibonacci Projection levels to try to estimate where trend move will reach. There are two oftenly used Fibo Projection levels: 61.8%Fibonacci Projection Level and 100% Fib Projection Level, these Fib 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 upward - the Fibo Projection indicator is plotted up-wards.
These Fibo Projection zones are displayed as horizontal lines above Fib Projection indicator, showing profit booking zones. In the example explained below if you had used the 100.00 % Fibo Projection area the you would have made good profit from this setup.
How to Draw Indices Fib Projection on Upwards Trend - How to Draw Fib Projection on Up 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 price retraced again after getting to the 100.00% Fib Projection level.
From the Fib Projection indicator tool example above, after drawing this Fibo Projection tool there are two levels that are used to show the profit booking zones, these two Fib Projection areas are plotted as horizontal lines across the chart marked as 61.8%Fib Projection Level and 100% Fibonacci Projection Level.
Explanation of How to Draw Fib Projection Areas on Charts
We use Fibonacci Projection levels to try to estimate where trend move will reach. There are two important Fibonacci Projection levels: 61.8% & 100 % Fib Projection Areas, these are used for profit taking.
To draw Fibo Projection levels on chart we wait til the price retracement is complete & stock indices price begins heading in original direction of the trend. Where the price pull back gets-to is used as point 3. Fibonacci Projection Indicator is plotted using 3 chart points as shown on example explained below of how to draw the Fibo Projection IndicatorTool.
The Fibonacci 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 trend started, Chart point 2 is where trend pulled back and retraced & Chart point 3 is where the retracement reached as portrayed on the Fibo Projection Indicator Tool example explained below.
How to Draw Fibonacci Projection Indicator on Upward Trend
Please note where these Fibo Projection areas are drawn - Fib Projection areas are plotted above Fibo indicator, these are chart levels where one will set take-profit orders using these Fib Projection Levels - 61.8% and 100.0% Fib Projection Zones.
