Simply put, Fib Retracements calculated in the tables on the left side above are used to measure how far a market has retraced its primary move. They help to gauge how much the market has taken back, from that which it has just given. If the market "takes back" only a small portion If the market "takes back" a slightly larger piece And if it "takes back" an even larger piece While Fib Retracement takes into consideration only likely market development within a specified price range, another way of using Fib numbers is to project how far price may move past the price range under consideration.
In other words, Fib Retracement values are applied inside a price range, while Fib Projection values are applied outside the price range. Use the calculation tables on the right side above. The resultant Projection Levels become our targets for the next move in the same direction as the primary. There is substantial risk of loss in stock and futures trading. There is no warranty, either express or implied, in regards to the fitness of this information for any particular purpose.
Past performance is not a guarantee of future results. No part of these resources may be reproduced, stored or transmitted without the prior written permission of the copyright holder. Enter start point A, end point B, and press "Go". To calculate Fibonacci projection levels, use the calculations tables on the right side. Enter start point A, midpoint B, end point C, and press "Go". This option will not work correctly. Unfortunately, your browser does not support inline frames.
Using Fibonacci Retracement and Projection Levels Simply put, Fib Retracements calculated in the tables on the left side above are used to measure how far a market has retraced its primary move. To calculate Fibonacci retracement levels, use the calculations tables on the left side below.More...