How Do I Draw Fib Projection Zones on Upward Trading Trend?
How Do You Draw Fib Projection Zones on Upward Trading Trend?
We use Fib Projection levels to estimate where the trend movement will reach. There are 2 commonly used Fib Projection levels: 61.8%Fibonacci Projection Level and 100% Fib Projection Level, these Fib Projection Levels are used for setting forex take profit levels.
On the Fibo Projection indicator example below you can see that the Fib Projection indicator is plotted along the direction of the trend, since the trend is upwards - the Fib Projection indicator is drawn upward.
These Fib Projection levels are displayed as horizontal lines above the Fibo Projection trading indicator, showing fx profit taking zones. In the trading example below if you had used of 100.0 % Fib Projection area you would have made nice profit from the trade set-up.
How Do You Draw Fibo Projection Zones on Upwards Trend?
From the above Fib Projection indicator tool example, the upward trend continued & both 61.80% and 100.00% Fib Projection levels were all hit after which the price retraced again after getting to the 100.00 % Fibonacci Projection level.
From Fibo Projection indicator tool example above, after drawing this Fibo Projection tool there are 2 levels that are used to show the forex profit taking zones, these 2 Fibo Projection areas are drawn as horizontal lines across the trading chart marked as 61.8 percent Fib Projection Level and 100% Fibo Projection Level.
Explanation of How Do You Draw Fibo Projection Areas on Charts?
We use Fib Projection levels to try to estimate where trend move will get to. There are 2 important Fib Projection levels: 61.8% & 100% Fib Projection Levels, these are used for taking profit.
To draw Fibo Projection levels on chart we wait til the price retracement is complete and price begins heading in original direction of Forex trend. Where the price pull back gets-to is used as point 3. Fibo Projection Indicator is plotted using 3 chart points as illustrated and shown on Fibo projection example below of how to plot the Fib Projection Technical IndicatorTool.
The Fibonacci Projection example below shows the 3 Chart Points where the Fib Projection indicator is plotted, marked as FX Chart point 1, Forex Chart point 2 and FX Chart point 3.
Forex Chart point 1 is where trend started, FX Chart point 2 is where trend pulled back & retraced and Forex Chart point 3 is where retracement reached as illustrated and shown on Fibo Projection Indicator Tool example below.
How Do I Draw Fib Projection Zones on Upwards Trend?
Please note where these Fibo Projection areas are plotted - Fibo Projection zones are plotted above the Fib indicator, these are the chart levels where one will set forex takeprofit orders using these fibonacci Projection Levels - 61.8% & 100.0% Fib Projection Levels.
How Do I Draw Fib Projection Zones on Upwards Trend?
