Fib Extension Gold Guide

We use Fib Extension Levels to estimate where the trend movement will reach. There are two important Fibo Extension levels: 61.80% and 100% Fib Extension Areas, these are used for taking profit.

To draw Fibo Extension levels on the MetaTrader 4 chart we wait until the price retracement is complete & the price starts to move in original direction of the trend. Where the trading price retracement reaches is used as chart point 3. Fibonacci Extension MT4 Indicator is plotted using three chart points as shown on the trading examples illustrated and described below of how to plot the Fibo Extension Indicator MetaTrader 4 Tool.

The Fibo Extension MT4 Indicator example illustrated and described below shows the Three Chart Points where the Fibo Extension MT4 technical indicator is drawn, marked as Chart point 1, Chart point 2 and Chart point 3.

Chart point 1 is where the trend started, Chart point 2 is where the trend pulled back & retraced & Chart point 3 is where the retracement reached as highligthed on the Fibo Extension MetaTrader 4 Indicator Tool examples illustrated and described below.

Fib Extension Gold Lesson - Fibo Extension Indicator Guide - Fib Extension Levels Tutorial

Fib Extension Gold Lesson - Fibo Extension Indicator Guide - Fib Extension Levels Tutorial

Please note where these Fibo Extension areas are drawn - Fib Extension areas are drawn above MetaTrader 4 Fibo indicator, these are chart points where a trader will set take profit orders using these Fibo Extension Levels - 61.8% & 100.0% Fibo Extension Areas.

Upward Trend - Fibonacci Extension Gold Lesson - Fibo Extension Indicator Guide - Fib Extension Levels Tutorial

We use Fib Extension Levels to estimate where the trend movement will reach. There are two important Fib Extension levels: 61.80% Fibo Extension Level and 100% Fib Extension Level, these Fibo Extension Areas are used for taking profit.

On the Fibo Extension MetaTrader 4 indicator example shown and described below you can see that the Fibo Extension MetaTrader 4 technical indicator tool is plotted along the direction of the trend, since the trend is upward - the MetaTrader 4 Fib Extension technical indicator is drawn up-wards.

These Fibo Extension levels are shown as horizontal lines above the Fib Extension MetaTrader 4 technical indicator, showing profit taking areas. In the trading examples illustrated & described below if you had used the 100.00% Fibo Extension level the you would have made good profit from this trade setup.

Upward Trend - Fibonacci Extension Gold Lesson - Fibo Extension Indicator Guide - Fib Extension Levels Tutorial

Fib Extension Indicator Course - Fib Extension Levels Tutorial

From the above Fib Extension MT4 indicator example, the upwards trend continued and both 61.80% and 100.00% Fib Extension levels were all hit after which price retraced again after getting to the 100.00% Fib Extension level.

Fib Extension Tutorial

Since we use the Fibo Extension MetaTrader 4 indicator tool to estimate take profit levels, how do we draw MetaTrader 4 Fib Extension in a downward trend?

We draw the Fibo Extension MT4 indicator tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the trading examples illustrated and described below. Remember we always draw this Fib Extension MetaTrader 4 technical indicator tool in the direction of the trend. In the Fibo Extension examples illustrated and described below, can you figureout what direction we have drawn it? That's right - downward direction.

Try & spot the difference between how we have plotted Fibo Extension indicator above and how Fibo Extension technical indicator is drawn below. This time you'd also have used Fibo Extension area 100.00 %, just where the price reached as illustrated on the example shown and explained below. That would have been a good level for taking profit.

Downward Trend - Fibonacci Extension Gold Lesson - Fibo Extension Indicator Guide - Fib Extension Levels Tutorial

Fib Extension Indicator Course - Fib Extension Levels Tutorial

From the Fibo Extension MetaTrader 4 indicator examples above, after drawing this MetaTrader 4 Fibo Extension tool there are two levels that are used to show the profit taking areas, these 2 Fibo Extension areas are drawn as horizontal lines across the trading price chart marked as 61.80% Fibo Extension Level and 100% Fib Extension Level.