A little more about Fibonacci
Fibonacci projections:
Fibonacci projection is a measurement from 2 points on a chart, and the range between these two price points is then 'predicted' in the future to be used as support and resistance.
You only need 2 Price on the schedule to determine the Fibonacci projection, and make sure that you measure it in the same direction as the price-share trend on your card.
Fibonacci extension:
A Fibonacci is a measurement tool, using 3 points on a chart, and the most commonly used technique for determining profit-target figures among day traders.
We will use 3 price points on the chart, calling them 'A', 'B', and 'C'.
The Fibonacci extension is going to measure the distance from point 'A' to 'B' and then spreads from the deepest point of growth at point 'c'
The theory behind Fibonacci lies in the fact that if the price went from 'A' to 'B' before, then most likely it will carry the same amount in the future.
Bonus: in addition to measuring the price range from point 'A' to 'b', and then projection that the price range in the future, we can also measure the time it took to move from point 'A' to 'B' and then extend this point to the future from point "c".
This is called Fibonacci extension, and is a very popular tool for trading-management.
Fibonacci Target Area:
Professional traders use Fibonacci levels, forecasts and extensions in various ways, but the most effective way is to combine the Fibonacci projections and extensions into a 'spectrum' that can be used as the target company of the transaction.
Combine the protrusions and Fibonacci extensions on the profit-target zone to manage the trade as a professional.