61.8% Gold Trading Fib Extension Level

We use Fibonacci extension levels to estimate where the gold trend xauusd price movement will reach. There are 2 important Fibonacci extension levels: 61.8% Fibonacci Extension Level and 100% Fibonacci Extension Level - these fibonacci extension levels are used for setting gold trading taking profit orders.

61.8% Gold Trading Fibo Extension Level

61.8 Fibonacci Extension Level is the most commonly used gold profit taking level when trading using the Fib Extension Technical Indicator.

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. Fibonacci Extension Indicator is drawn using three chart points as the example shown below of how to draw the Fibonacci Extension Levels Indicator.

The Fibonacci extension example illustrated and explained below shows the 3 XAUUSD Chart Points where the Fibonacci extension 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 price pulled back & retraced - XAUUSD Chart point 3 is where the price retracement reached as illustrated on the Fibonacci Extension Levels Indicator example shown below.

The First Fibonacci Extension Level is the 61.8 Fibonacci Extension Level shown on the Fibonacci Extension indicator example Below Used to Set Take Profit Gold Orders

How Do I Read 61.8% Fibonacci Extension Level

Please note where these Fibonacci Extension levels are drawn on the xauusd chart - Fibonacci Extension zones are plotted above the Fibo Extension indicator - these are the chart points where a trader will place the gold take profit orders using these Fibo Extension Levels - 61.8% Fibonacci Extension Levels.

Interpret 61.8% Fibonacci Extension Level