Fib Projection

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: the second leg travels as far as the first.

Naming is inconsistent across platforms and books. Some call this tool a trend-based 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.

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 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.