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