How Do I Draw Fibonacci Expansion Levels on Downward Gold Trend?
How Do I Draw Fibonacci Expansion Levels on Downward XAUUSD Trend?
We draw the Fibonacci Expansion Indicator tool from chart point 1 to chart point 2 to chart point 3 as shown on the Fibonacci expansion xauusd example illustrated and described below. Remember we always draw this Fibonacci Expansion tool in the direction of the trend. In the Fibonacci Expansion example illustrated and described below, can you figureout what direction we have drawn it? That's right - downward direction.
As a trader you would also have used Fibonacci Expansion level 100.0%, just where the price reached as illustrated on the Fibonacci Expansion example illustrated and explained below. That would have been a good gold take profit area.
How Do I Draw Fibonacci Expansion Levels on Downward Gold Trend?
From the Fibonacci Expansion Indicator tool example above, after plotting this Fibonacci Expansion Indicator tool there are 2 levels that are used to show the gold profit taking levels - these two Fibonacci Expansion levels are represented as horizontal lines across the gold chart marked as 61.8% Gold Fibonacci Expansion Level & 100% Fibo Expansion Level.
Interpretation of How Do I Draw Fibonacci Expansion Levels on XAUUSD Charts?
Gold traders Fibonacci Expansion levels to estimate where the price movement will reach. There are 2 commonly used Fibonacci Expansion levels: 61.8% Fibonacci Expansion Level and 100% Fibonacci Expansion Levels - these fibonacci expansion levels are used for setting gold taking profit levels.
To draw Fibonacci Expansion levels on the gold 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 Expansion Gold Indicator tool is drawn using three chart points as illustrated on the Fib expansion xauusd trading examples illustrated and described below of how to plot the Fibonacci Expansion Technical Indicator Tool.
The Fibonacci Expansion example illustrated and explained below shows the 3 XAUUSD Chart Points where the Fib Expansion 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 gold retracement reached as illustrated on the Fibonacci Expansion Indicator Tool example illustrated & explained below.
Interpret & Draw Fibonacci Expansion Levels on Downward Gold Trend?
Please note where these Fibonacci Expansion zones are plotted - Fibo Expansion zones are drawn above the Fibonacci gold technical indicator, these are chart points where a trader will place gold take-profit orders using these Fibonacci Expansion Levels - 61.8% Fibonacci Expansion Level and 100.0% Fibo Expansion Level.
How Do I Draw Fibonacci Expansion Levels on Downward Gold Trend
