Using Fibonacci Retracement and Projection Levels
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. Enter the beginning and ending values of a primary move (A & B) and then also the extreme retracement value of that primary move (C). The resultant Projection Levels become our targets for the next move in the same direction as the primary.