Joined Mar 2006
Status: Trade the reaction not the news!
In order of importance how I was taught:
1) Projection takes difference from point 1 to 2 times by key fib ratios and adds it to point 3, reverse for downtrend.
2) Extension takes difference of point 1 to 2 and times by key fib ratios and adds it back to point 2, again reverse for downtrend.
3) Expansion takes a key reversal point (in this case swing low bar (marked with 1 and 2) as well as first wave up (marked with 1 and 2A) measures it and times by key fib ratios and adds to point 1, once again reverse for downtrend.