How Do You Interpret Fibonacci Retracement vs Fibonacci Expansion?
How Do I Analyze Fibonacci Retracement vs Fibonacci Expansion?
Fibonacci retracement is drawn between 2 chart points but Fibonacci expansion is drawn using 3 chart points.
Fibonacci Retracement Technical Indicator example illustrated and explained below - where the gold trend is moving downwards between XAUUSD Chart point 1 and XAUUSD Chart point 2 - then after XAUUSD Chart point 2 the xauusd price retraces then it continues moving up in the original upwards trend. Note that this Fibonacci Retracement Technical Indicator is drawn from XAUUSD Chart point 1 to XAUUSD Chart point 2 in the direction of the trend.
How Do You Interpret Fibonacci Retracement vs Fibonacci Expansion?
XAUUSD Trading Fib Expansion Levels
Fibo retracement indicator is drawn between 2 chart points but Fibo expansion is drawn using 3 chart points.
To draw these Fibonacci Expansion levels gold traders will wait until the xauusd price retracement is complete & the price starts to move in original direction of the trend. Where the xauusd price retracement reaches - this point is used as chart point 3 for Fibonacci expansion xauusd trading technical indicator.
The Fibonacci Expansion Indicator example illustrated and explained below shows the 3 chart points where the Fibonacci Expansion Indicator is drawn, marked as chart points 1, 2 and 3. XAUUSD Chart point 1 is where the gold trend started, XAUUSD Chart point 2 is where the price pulled back and retraced and Chart point 3 is where the price retracement reached as illustrated on the Fibonacci Expansion Indicator example illustrated & described below.
How Do I Interpret Fibonacci Retracement vs Fibonacci Expansion?
Please note where these Fibonacci expansion levels are drawn - Fibonacci Expansion zones are plotted above the Fib Expansion Indicator - these are the points where a trader will set gold take profit orders.
How Do I Read Fibo Retracement vs Fibo Expansion?
