Use Trend-Based Fib Extension on Punch charts

Trend-Based Fibonacci Extension is a drawing tool that projects potential price targets beyond a completed move. Where Fib Retracement uses two points to find where a pullback might stop, this tool uses three points to find where price might go once the pullback ends — useful for setting profit targets or spotting likely resistance and support.

Finding the tool

Fibonacci tools now live together under a Fibonacci item in the drawing tools dropdown. Open it to find:

• Fib Retracement (unchanged — only its location has moved)

• Trend-Based Fib Extension

Punch remembers the last Fibonacci tool you used and shows it as the default next time you open the menu.

Plotting the three points

Select Trend-Based Fib Extension, then click three points in order:

1. Point A — start of the impulse move. The swing low in an uptrend, or the swing high in a downtrend.

2. Point B — end of the impulse move. A dashed trend line is drawn from A to B.

3. Point C — end of the pullback. A dashed trend line is drawn from B to C, and all extension levels are calculated and drawn.

After the third click the drawing is complete and the tool exits, the same as other multi-click drawings.

How the levels are calculated

The tool measures the impulse move (A to B) and projects that distance from Point C for each Fibonacci ratio:

Level price = C + (B − A) × ratio

For a bullish example with A = ₹23,500, B = ₹24,500 and C = ₹24,000, the impulse range is ₹1,000:

The 1.0 level is a full 100% of the A-to-B distance projected from C. Levels below 1.0 are partial projections; levels above 1.0 are extended projections. In a downtrend, A sits above B, so (B − A) is negative and the levels project downward from C — the formula is identical.

What gets drawn

• Each active level is a horizontal line at its calculated price, labelled with the ratio and price, for example "1.618 (₹25,618)".

• The A-to-B and B-to-C trend lines are dashed and lower-opacity, so they stay distinct from the level lines.

• Semi-transparent colour shading fills the zones between levels by default, matching the style of Fib Retracement.

• When the drawing is selected, all three points show draggable handles.

Editing and settings

Click any level or trend line to select the drawing — an edit toolbar appears with settings (pencil), copy, duplicate and delete, the same as other drawings. Drag any of the A, B or C handles and every level recalculates in real time. You can also drag the whole drawing to move all three points together.

Open the settings (pencil icon or double-click) to customise it. Fib Retracement and Trend-Based Fib Extension share the same settings panel — the only difference is Retracement has two coordinate points and Extension has three. Settings include:

• Trend line — show/hide, colour, and line style for the connecting lines.

• Levels — a grid where each level has a checkbox to show or hide it, an editable ratio, and a colour. By default the 8 core levels (0, 0.236, 0.382, 0.5, 0.618, 0.786, 1, 1.618) are shown; extras like 2.618, 3.618 and 4.236 are available but unchecked.

• Use one colour — apply a single colour to every level instead of per-level colours.

• Extend — Don't extend (default), Extend left, Extend right, or Extend both.

• Background — show/hide the zone fill, with an opacity slider.

• Reverse — flip the drawing direction.

• Prices and Levels — show the price and the ratio (or percentage) on each label.

• Labels and Text — horizontal and vertical position of labels and text.

• Font size — 10 to 14, default 12.

• Fib levels based on log scale — calculate levels on a logarithmic scale instead of linear.

• Coordinates — type exact price and bar numbers for each anchor point.

Things to keep in mind

• Desktop tool. Trend-Based Fib Extension is a Punch desktop drawing tool.

• It survives timeframe changes but not symbol changes — like other drawings, it stays anchored to its price and time coordinates when you switch timeframe, and is removed when you change symbol.

• It appears in your drawings list so you can show, hide or delete it there.

• Your last-used settings carry over to the next Trend-Based Fib Extension you draw.

• Background fill never blocks clicks on candles or other drawings underneath it.