How Do I Draw Fibonacci Extension Levels on Upward Gold Trend?
How Do I Draw Fibonacci Extension Levels on Upward XAUUSD Trend?
We use Fibonacci Extension levels to estimate where the trend movement will reach. There are 2 commonly used Fibonacci Extension levels: 61.80% XAUUSD Trading Fib Extension Level and 100% Fibonacci Extension Level, these Fibonacci Extension Levels are used for setting gold take profit levels.
On the Fibonacci Extension indicator example illustrated and explained below you can see that the Fibonacci Extension technical indicator tool is drawn along the direction of the trend, since the trend is up - the Fibonacci Extension technical indicator is drawn upwards.
These Fibonacci Extension zones are shown as horizontal lines above the Fibonacci Extension indicator, showing gold profit taking areas. In the gold example illustrated and explained below if you had used of 100.0% Fibo Extension level you would have made good profit from using this setup.
How Do I Draw Fibonacci Extension Levels on Upward Gold Trend?
From the above Fibonacci Extension indicator tool example, the upward trend continued & both 61.80% and 100.00% Fibonacci Extension zones were all hit after which the xauusd price retraced again after getting to the 100.00% Fibonacci Extension level.
From the Fibo Extension indicator tool examples above, after drawing this Fibonacci Extension tool there are 2 levels that are used to show the gold profit taking areas, these two Fibo Extension areas are drawn as horizontal lines across the xauusd chart marked as 61.8% XAUUSD Trading Fib Extension Level & 100% Fibo Extension Level.
Explanation of How Do I Draw Fibonacci Extension Levels on XAUUSD Charts?
We use Fibo Extension Levels to estimate where the trend movement will reach. There are Two important Fibonacci Extension levels: 61.80% & 100% Fibo Extension Areas, these are used for taking profit.
To draw Fibo Extension levels on the xauusd chart we wait until the xauusd price retracement is complete & the price starts to move in original direction of the Gold trend. Where the xauusd price retracement reaches is used as chart point 3. Fibo Extension Indicator is drawn using three chart points as illustrated on the Fibonacci extension gold example illustrated and explained below of how to draw the Fibonacci Extension Technical Indicator.
The Fibonacci Extension example illustrated and explained below shows the 3 XAUUSD Chart Points where the Fibo Extension technical indicator is drawn, marked as XAUUSD Chart point 1, XAUUSD Chart point 2 and XAUUSD Chart point 3.
XAUUSD Chart point 1 is where the gold trend started, XAUUSD Chart point 2 is where the gold trend pulled back & retraced & XAUUSD Chart point 3 is where the gold retracement reached as displayed on the Fibonacci Extension Indicator example illustrated & described below.
Interpret and Draw Fibonacci Extension Levels on Upward Gold Trend?
Please note where these Fibo Extension levels are drawn - Fibo Extension zones are plotted above the Fibo gold technical indicator, these are the chart points where a trader will set gold take profit orders using these Fibonacci Extension Levels - 61.80% and 100.00% Fibonacci Extension Levels.
How Do I Draw Fibonacci Extension Levels on Upward Gold Trend
