How Do You Interpret Fib Retracement vs Fib Expansion?

How Do I Analyze Fibonacci Retracement vs Fib Expansion?

Fibonacci retracement is drawn between 2 points but Fibonacci expansion is drawn using 3 chart points.

Fibonacci Retracement Technical Indicator example illustration illustrated and explained below - where the trend is moving downwards between Chart point 1 and Chart point 2 - then after Chart point 2 the price retraces then it continues moving up in the initial upwards trend. Note that this Fibonacci Retracement Technical Indicator is drawn from Chart point 1 to Chart point 2 in the direction of the trend.

How Do I Analyze Fibonacci Retracements vs Fib Expansion? - How to Draw Gold Fib Retracement

How Do You Interpret Fib Retracement vs Fib Expansion?

XAUUSD Fib Extension Levels

Fib retracement indicator is drawn between 2 chart points but Fibonacci expansion is drawn using 3 chart points.

To draw these Fib Expansion levels traders will wait until the price retracement is complete & price begins to head in original and initial direction of trend. Where the price retracement reaches - this point is used as chart point 3 for Fibonacci expansion trading indicator.

The Fib Extension Indicator example illustration depicted and explained below portrays the 3 chart areas where the Fib Expansion Indicator is drawn, labeled as chart point 1, 2 & 3. Point 1 is where trend started, Point 2 is where the price pulled back & retraced and Chart point 3 is where the price retracement reached as illustrated on the Fib Expansion Indicator example illustration depicted & explained below.

How to Interpret Fib Retracement Levels vs Fib Expansion

How Do I Analyze Fib Retracement vs Fib Expansion?

Please note where these Fibonacci expansion levels are drawn - Fib Expansion areas are drawn above the Fibo Extension Indicator - these are the points where a trader will set take-profit orders.

How Do You Read Fib Retracement vs Fib Expansion?

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How Do You Interpret Fib Retracement vs Fib Expansion?

How Do I Analyze Fibonacci Retracement vs Fib Expansion?

XAUUSD Fib Extension Levels