Price extensions

Here's a quick tip in projecting potential support/resistance levels off of previous swing lows/highs. On Tradestation we have a drawing tool known as Price Extension Lines (under the set of Fibonacci Drawing tools). This is a tool which uses 3 data points in it's projection (in this case we'll use a swing low drawn to a swing high and projected from the following swing low). Essentially, you're taking the difference between two data points (highs to lows, or lows to highs) multiplying by your Fibonacci ratio and adding (or subtracting) that result to your third data point.
So, with the default settings at 61.8%, 100%, and 161.8% we first click on the most recent swing low (Nov. 2nd), extend it to the highest high before a meaningful correction occurred, and project that off of the meaningful swing low, like so:Next, you can add another extension, going from swing low, to swing high, and projecting from a swing low, like so:Here's an example where I used 4 sets of extensions on the most recent swing down in the SPY ranging from 10/21 - 11/2And here's an example from the most recent leg up in the daily chart going back to July:
Finally, I'll throw in a visual explanation of how the procedure is calculated:And here's a link for further guidance, and an explanation regarding confluence zones with this tool.