How Do You Analyze Fibo Expansions on Charts?
How Do I Read Fibo Expansions on Charts?
To Calculate Fibonacci Expansion levels on charts we use the Fib Extension Technical Indicator
What are the Fibo Expansions?
- 61.80 % Fib Extension Level
- 100% Fibo Extension Level
We use Fibonacci extension levels to estimate where the price movement will reach. There are two crucial fibonacci extension levels: 61.80 % & 100% Fibonacci Extension levels, these levels are used for taking profit.
To draw Fibonacci expansion levels trade technical indicatorwe use Three chart points.
To draw Fibo expansion levels we wait until the price retracement is complete and the price starts to move in original direction of the trend. Where the price retracement reaches is used as point 3.
The example shown & described below displays the 3 Points where the Fibo expansion indicator is plotted, labeled as chart point 1, 2 and 3. Point 1 is where the price trend started, Point 2 is where the price trend retraced and xauusd trading point 3 is where the price retracement reached as displayed on the example shown and described below.
How Do You Interpret Fibo Expansions on Charts? - Fibo Extension Technical Indicator Tutorial
The two Fibonacci expansion levels 61.8 percentage & 100 Percent Fibo Expansion areas were then drawn above the Fibo Extension Technical Indicator as displayed on the above example.
How Do You Analyze Fibo Extension Levels on Charts?
Learn More Tutorials:
- Characteristics of the 3 Major Gold Sessions
- Gold Candlestick System
- What is a Micro Gold Account in Gold? Micro Gold Account Explanation
- Example of a Written Gold Plan
- Gold MAs
