# Fib Projection Also known as: expansion. A Support/Resistance & Levels concept (Fibonacci suite) in the LuxAlgo Library, with 1 indicator implementation. ## What is a Fib Projection? A Fib projection is a three-point Fibonacci tool: it measures one completed swing, then plots ratios of that swing's length from a different starting point. Take an advance from A to B and a pullback to C, and the tool projects levels at 0.618, 1.0, 1.272, and 1.618 of the A-to-B distance measured from C. The 1.0 level is the measured move, the same equality logic behind the [ABCD pattern](https://www.luxalgo.com/library/concept/abcd/): the second leg travels as far as the first. The tool descends from two traditions at once: the measured-move rule of classical charting, which projected a flag's pole from the breakout long before ratios were attached, and the Elliott and Fibonacci practice that generalized equality into a ratio family (DiNapoli's teaching used the expansion vocabulary for the same three-point construction). Platforms merged the lineages into today's tool, which is why its names remain unsettled while its arithmetic is universal. Naming is inconsistent across platforms and books. Some call this tool a trend-based [Fib extension](https://www.luxalgo.com/library/concept/fib-extension/), reserving extension for the two-point version that stretches ratios of a single swing beyond its own end; others use projection and expansion interchangeably. What matters is the anchor logic: a projection transfers a prior swing's size onto a new base, so always check which points a level was drawn from before trading it. Anchor craft carries the tool. The measured swing should be a clean, significant leg with unambiguous endpoints, and the C anchor belongs at the pullback's genuine terminus, which often means waiting for that pullback to prove itself first. Projections drawn from minor wiggles produce a lattice of meaningless targets, and re-anchoring until a level flatters the position is the standard self-deception. Like every measured level, a projection is strongest where independent references agree with it and weakest floating alone. ## How to draw a Fib projection The bullish continuation case is described; invert the anchors for declines. 1. Identify the completed impulse: a clean swing from A (origin) to B (extreme) worth transferring forward. 2. Anchor C at the end of the pullback that followed, once that pullback has plausibly terminated. 3. Plot the ratio levels from C: 0.618, 1.0 (the measured move), 1.272, and 1.618 of the A-to-B distance are the standard set. 4. Treat the levels as management shelves: places to scale, trail, or watch for stalls, rather than reversal predictions. 5. Upgrade levels with confluence: a projection landing on a [prior period level](https://www.luxalgo.com/library/concept/prior-period-levels/), a retracement from a larger swing, or a tested [S/R zone](https://www.luxalgo.com/library/concept/s-r-zone/) outranks any lone ratio. 6. Re-draw only when structure changes: a deeper pullback that replaces C invalidates the old projection rather than coexisting with it. ## How it's calculated Targets for a new swing, found by measuring a prior swing's height from the end of the intervening correction at Fibonacci multiples. ``` 1. Anchor three points: impulse start A, impulse end B, and the end C of the correction that follows. 2. Compute the impulse height: Range = B - A, keeping its sign. 3. Project levels from the third anchor in the impulse direction: P_p = C + p × Range for each ratio p in {0.618, 1.0, 1.272, 1.618}. 4. For p = 1.0 this gives P_p = C + Range, the measured move where the new swing equals the prior one. 5. Treat the levels as targets for the swing that begins at C. A: impulse swing start price B: impulse swing end price C: correction end price, the third anchor Range: B - A, the impulse height, signed p: projection ratio (common set 0.618, 1.0, 1.272, 1.618; 2.0 and 2.618 also used) P_p: projection level for ratio p ``` Also called Fibonacci expansion (MetaTrader) or trend based Fib extension (TradingView), so check which anchors a platform's tool expects. With p = 1.0 the projection is the classic measured move, often written AB = CD. ## How traders use it - As profit targets for continuation trades: after entering on the pullback at C, traders scale out where the new leg reaches 0.618, 1.0, or 1.618 of the prior swing, since those are shelves other participants commonly watch. - For wave targets: Elliott practitioners project wave 1's length from the wave 2 low to estimate wave 3, and wave A from the B point to estimate wave C, following common [Fib wave relationships](https://www.luxalgo.com/library/concept/fib-wave-relationships/) such as equality and 1.618. - As confluence: a projection level that overlaps a prior high, a retracement from a larger swing, or another draw's target marks a stronger zone than any single measurement. - In automated confluence maps: projection levels feed [level-clustering](https://www.luxalgo.com/library/concept/level-clustering-algorithms/) toolkits alongside retracements and pivots, where overlapping targets from different swings earn the scores that lone levels do not. - With the time axis attached: pairing a price projection with [Fib time tools](https://www.luxalgo.com/library/concept/fib-time-tools/) frames when the measured objective might arrive as well as where, a two-axis version of the same transfer logic. ## Fib Projection vs related Fibonacci tools - **Fib Retracement** (https://www.luxalgo.com/library/concept/fib-retracement/): The retracement measures within a swing, grading pullback depth between its endpoints. The projection transfers a swing's length onto a new base to set targets beyond it: one tool asks how deep, the other how far. - **Fib Geometry Tools** (https://www.luxalgo.com/library/concept/fib-geometry-tools/): The geometry family (fans, arcs, channels) applies ratios to slope and curvature. Projections stay purely vertical, transferring price distance alone, which keeps them the family's most testable and least discretionary member after the retracement. - **Fibonacci Pivots** (https://www.luxalgo.com/library/concept/fibonacci-pivots/): Fibonacci pivots put ratios through a fixed formula on the prior period's range, identical for all users. Projections are drawn from chosen swings, so they respond to structure and carry anchor discretion the formula version deliberately removes. ## FAQ ### Is a Fibonacci projection the same as a Fibonacci extension? Usage overlaps and platforms disagree. Strictly, a projection measures one swing and replots ratios of it from a third point, while an extension extends ratios of a single swing beyond its own end. Several charting tools label the three-point version a trend-based Fib extension. Before comparing levels from different sources, confirm which anchors each one was drawn from. ### Which Fibonacci projection levels are most watched? The 1.0 projection (the measured move, where the new leg equals the old one) and 1.618 are the most commonly cited, with 0.618 and 1.272 also popular. None is a ceiling or floor by itself: strong trends run through equality targets and weak ones stall early, so most traders treat these levels as areas to manage positions rather than automatic reversal points. ### How does a projection relate to the measured move? The 1.0 projection is the measured move: the expectation that a continuation leg matches the prior impulse, the oldest target rule in charting. The projection tool generalizes it into a ladder, with 0.618 as the conservative shelf for weaker continuations and 1.272 or 1.618 as the extended objectives when the second leg outruns the first. Equality remains the reference case the other ratios are graded against. ### Which swing should be measured for the projection? The impulse the trade expects to be repeated: the most recent clean leg in the trade's direction, measured from its genuine origin to its extreme, with C at the terminus of the pullback between them. Minor swings produce minor, crowded targets; re-anchoring until the levels flatter a position is the classic misuse. If the endpoints are debatable, the targets inherit the debate. ### What does the 1.272 level represent? The square root of 1.618, one of the standard intermediate members of the ratio family: past equality, short of the golden extension. Harmonic patterns use it as a completion ratio, and target-setters treat it as the shelf between an ordinary continuation (1.0) and an extended one (1.618). Its authority, like every ratio's, is conventional rather than mechanical, strongest where other measurements agree. ### Do projections work in ranging markets? Poorly, because the premise is continuation: a measured impulse whose energy repeats from a new base. Inside a range, legs are rotational and routinely die at the boundary regardless of what any ratio says, so projections mostly mark prices beyond the range that never trade. The tool regains meaning when a genuine breakout leg establishes the new impulse worth transferring. ## Implementations in the Library - Fibonacci Progression with Breaks (LuxAlgo): https://www.luxalgo.com/library/indicator/fibonacci-progression-with-breaks/ ## Related concepts - Fib Retracement: https://www.luxalgo.com/library/concept/fib-retracement/ - Fib Extension: https://www.luxalgo.com/library/concept/fib-extension/ - Fib Geometry Tools: https://www.luxalgo.com/library/concept/fib-geometry-tools/ - Fib Time Tools: https://www.luxalgo.com/library/concept/fib-time-tools/ - Fib Clusters: https://www.luxalgo.com/library/concept/fib-clusters/ - Golden Pocket: https://www.luxalgo.com/library/concept/golden-pocket/ --- Source: https://www.luxalgo.com/library/concept/fib-projection/ (LuxAlgo Library, the encyclopedia of trading & technical analysis). Free to use with attribution: https://www.luxalgo.com/library/license/