How Do I Calculate Fibonacci Expansion Levels on Gold Charts?

To Calculate Fibonacci Expansion levels on gold charts we use the Fibo Expansion Indicator

What are the Fibo Expansion Levels?

• 61.80% Fibonacci Expansion Level
• 100% Fibonacci Expansion Level

We use Fibonacci expansion levels to estimate where the price movement will reach. There are 2 important fibonacci expansion levels: 61.8% and 100% Fibonacci Expansion levels, these level are used for taking profit.

To draw Fibonacci expansion we use Three chart points.

To draw Fibonacci expansion levels we wait until the xauusd price retracement is complete and xauusd price starts to move in original direction of the Gold trend. Where the retracement reaches is used as point 3.

The example illustrated and explained below shows the 3 Chart Points where the Fibonacci expansion indicator is drawn, marked as chart point 1, 2 and 3. Chart point 1 is where the price gold trend started, Chart point 2 is where the price gold trend retraced and chart point 3 is where the price retracement reached as illustrated on the xauusd trading example illustrated and explained below.

How Do You Calculate Fibonacci Expansion Levels on Gold Charts?

The two Fibonacci expansion levels 61.8% and 100% Fibonacci Expansion levels were then drawn above the Fibonacci Expansion Indicator as shown on the xauusd trading example above.