Projecting price beyond the original swing. Reading how far a new leg has room to run, in the language of supply, demand, and crowd fatigue.
The Fibonacci extension — sometimes called the projection — is a tool for estimating how far a new leg will travel after a trend resumes from a pullback. Retracement asks "how far back will price come"; extension asks "how far forward will price go, measured against the prior swing".
In other words, it is a tool for setting profit targets. Its role is in the exit, not the entry.
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