Basic price projections
Basic support and resistance will be found at price turning points and windows. More support levels will be found at the level of trendlines and trend channels as well as reaching reaction lines.
Price Projections - This turns the Fibonacci Tool into a Price Projection tool. In this mode, it will use only one price, and base it's retracements off retracements from that price down to zero. If the price is 100.
Price projections are identified by taking the point or percent change (dependent on the price of the security) between the Head and the Neckline.
Investors looking for long or short term capital gains should focus on the stock's future price projections. These price projections can be found immediately below the advice box in the upper left hand corner of the report.
The four hour compression generates less trend line breaks and more accurate price projections than any other time compression. All analysis shown of trend lines will be conducted of the four hour compression.
If you would like to read more about Fibonacci price projections see Constance Brown's book, Technical Analysis for the Trading Professional and Joe DiNapoli's Trading with DiNapoli Levels.
Further Information ...
The Wave Structures Check lists, Summaries of the Most Important Price Projections, Ratios by Wave, and Worksheets are invaluable and alone are worth the price of this book. If you trade or plan to, you should buy and study this book.
Chart patterns can be based on any price chart of any time-frame, and usually provide clear entry and exit signals, as well as price projections, stop levels and profit targets.
The most frequently used percentage alternate price projections are 62 percent, 100 percent, and 162 percent. The principle is that the price range of a section is often one of the key APP ratios of recent sections.
Put simply, technical analysis is the art of being able to analyze previous market trends to create future price projections.
A-B =C-D when B-C =38.2% of A-B
61.8% retracements are warning signs of a potential trend changes. For a more detailed explanation of Fibonacci price projections and price wave theory I highly recommend the Elliot Wave Principle links below.
Even mining industry CEOs -- including Newmont's Richard O'Brien and Sean Boyd from Agnico-Eagle Mines -- have ditched the customary ultraconservative price projections for public acknowledgements that $2,000 gold looms.
The analysis of past performance should quickly identify signals or patterns to assist the investor on future price potential. That is why we focus on Japanese Candlesticks for a quick visual depiction of price projections based upon proven patterns.
 See also: Trend, Analysis, Indicator, Trading, Point
  
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