How to Draw Fibonacci Projection Stock Indexes Indicator Tool on Upwards Indices Trend
Indices Trading Draw Fibonacci Projection for Indices Trading Uptrend?
We use Fibonacci Projectionlevels to estimate where the indices trend movement will reach. There are 2 commonly 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 indicator example explained and illustrated below you can see that the Fibonacci Projection indicator tool is drawn along the direction of the indices trend, since the indices trend is up - the Fibonacci Projection indicator is drawn upwards.
These Fibonacci Projection levels are displayed as horizontal lines above the Fibonacci Projection indicator, showing profit taking areas. In the stock indexes trading example explained and illustrated below if you had used of 100.0% Fibonacci Projection level you would have made nice profit from the trade setup.
How to Draw Indices Trading Fib Projection on Upward Indices Trend - How to Draw Fibonacci Projection on Up Indices Trend
From the above Fibonacci Projection indicator tool example, the upward indices trend continued and both 61.8% and 100.0% Fibonacci Projection levels were all hit after which the stock indexes price retraced again after getting to the 100.0% Fibonacci Projection level.
From the Fibonacci Projection indicator tool example above, after drawing this Fibonacci Projection tool there are two levels that are used to show the profit taking areas, these two Fibonacci Projection levels are drawn 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 Levels on Stock Indexes Charts
We use Fibonacci Projectionlevels 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.
To draw Fibonacci Projection levels on the stock indices chart we wait until the stock indexes price retracement is complete and the stock indexes price starts to move in the original direction of the Indices trend. Where the stock indexes price retracement reaches is used as chart point 3. Fibonacci Projection Indicator is drawn using three chart points as shown on the stock indexes 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.
How to Draw Fibonacci Projection Stock Indexes Indicator Tool on Upwards Indices Trend
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% and 100.0% Fibonacci Projection Levels.
