How Do I Draw Fibonacci Expansion Levels on Upward Gold Trend?
How Do I Draw Fibonacci Expansion Levels on Upward XAUUSD Trend?
We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 commonly used Fibonacci Expansion levels: 61.8% Gold Trading Fibonacci Expansion Level and 100% Fibonacci Expansion Level, these Fibonacci Expansion Levels are used for setting gold take profit levels.
On the Fibonacci Expansion Indicator example illustrated and explained below you can see that the Fibonacci Expansion Indicator tool is drawn along the direction of the trend, since the trend is up - the Fibonacci Expansion Indicator is drawn upwards.
These Fibonacci Expansion levels are displayed as horizontal lines above the Fibonacci Expansion Indicator, showing gold profit taking areas. In the xauusd trading examples described below if you had used the 100.00% Fibo Expansion level you would have made a good profit from this trade setup.
How Do I Draw Fibonacci Expansion Levels on Upward Gold Trend?
From the above Fibonacci Expansion Indicator tool example, the upward trend continued & both 61.80% and 100.00% Fibonacci Expansion levels were all hit after which the xauusd price retraced again after getting to the 100.00% Fibonacci Expansion level.
From the Fibonacci Expansion Indicator tool example above, after drawing this Fibonacci Expansion tool there are 2 levels that are used to show the gold profit taking areas, these two Fibonacci Expansion zones are drawn as horizontal lines across the gold chart marked as 61.8% Gold Trading Fibo Expansion Level & 100% Fibonacci Expansion Level.
Explanation of How Do I Draw Fibonacci Expansion Levels on XAUUSD Charts?
We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are Two important Fibonacci Expansion levels: 61.80% & 100% Fibonacci Expansion Levels, these are used for taking profit.
To draw Fibo Expansion 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 Expansion Gold Indicator is drawn using three chart points as illustrated on the Fib expansion xauusd examples illustrated & explained below of how to draw 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 gold trend pulled back & retraced & XAUUSD Chart point 3 is where the gold retracement reached as illustrated on the Fibonacci Expansion Indicator Tool examples illustrated and described below.
Interpret and Draw Fibonacci Expansion Levels on Upward Gold Trend?
Please note where these Fibonacci Expansion zones are drawn - Fibonacci Expansion zones are plotted above the Fibonacci gold technical indicator, these are the chart points where a trader will set gold take profit orders using these Fibonacci Expansion Levels - 61.8% & 100.0% Fibo Expansion Levels.
How Do I Draw Fibonacci Expansion Levels on Upward Gold Trend
