I start by finding the location of a correction. I define a correction as anything the closes below the 20 period moving average. The lowest point in that correction becomes the first point of my . Then you need to find the high prior to the next correction - that will become your second point of the . What you have after that will be the Fibonacci scale. Corrections are expected to occur between the values of .5 and .768, with many ending at .618. This is the predicted bottom of the correction.
Adding to this we can make predictions as to the next Price Target (or correction point). To so this just add a Fib Extension to your chart, the first two point reuse the two points determined with your Retracement, the third point is the actual low point of the retracement correction.
This will add a positive Fibonacci scale, which you can use to make future Price Target predictions. Typically is your retracement was between .5 and .768, you can expect the PT to be around the 1.618 on the scale.
From my diagram you can see that I have one completed correction/surge cycle which matches nicely with the expectations. There is also the next PT, which is yet to be completed, which lands us at the $77 range.
Hopefully this is helpful, as I think it's a pretty simple yet powerful tool!
Good luck and I'm always interested in what you think.