Draw Fibonacci Projection Levels
How Do I Draw Fibonacci Projection Levels?
Traders use Fibonacci projection levels to estimate where the trend movement will reach. There are two commonly used Fibonacci projection levels - 61.8% Fibonacci Projection Level and 100% Fibonacci Projection Levels, these fibonacci projection levels are used for setting gold take profit levels.
To plot Fibonacci Projection zones on the trading gold chart we 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 is used as chart point 3. Fibo Projection Trading XAUUSD Indicator is drawn using Three chart points as shown and illustrated on Fibonacci projection trading gold example illustrated and explained below of how to draw the Fibonacci Projection Trading XAUUSD Indicator Tool.
The Fibonacci projection example illustrated and explained below shows the 3 XAUUSD Chart Points where the Fibonacci projection trading xauusd technical 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 shown and illustrated on the Fibonacci Projection Trading XAUUSD Indicator Tool example illustrated and explained below.
Gold Draw Fibo Projection Levels - Draw Fibonacci Projection Levels?
Please note where these Fibonacci Projection levels are plotted - Fibo Projection zones are plotted above the Fibonacci trading gold technical indicator, these are the chart points where a trader will set xauusd take profit orders using these fib Projection Levels - 61.8% and 100.0% Fibonacci Projection Levels.
Drawing Fib Projection Zones on an Upwards XAUUSD Trend
We use Fibonacci expansion levels to estimate where the market trend movement will reach. There are two commonly used Fibonacci projection levels: 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level, these Fibonacci Projection Levels are used for taking profit.
On the Fib projection trading gold indicator example illustrated and explained below you can see that the Fibonacci projection technical indicator is drawn along the direction of the trend, since the trend is upwards - the Fibonacci projection levels trading gold indicator is drawn upward.
These Fibonacci projection areas are shown as horizontal lines above the Fib Projection trading xauusd trading technical indicator, showing gold profit taking areas. In the trading gold examples illustrated and described below if you had used 100.0% Fibonacci projection level the you would have made nice profit from this trade setup.
Drawing Fibonacci Projection Zones Trading XAUUSD Indicator on an Upward Gold Trend
From above Fibonacci projection trading gold indicator example, the upward trend continued & both 61.80% and 100.00% Fibonacci projection levels were all hit after which xauusd price retraced again after getting to the 100.00% Fibonacci Projection level.
Drawing Fib Projection Levels on a Downward XAUUSD Trend
Since we use the Fibonacci projection trading indicator tool to estimate gold take profit levels, how do we draw Fibonacci Projection in a downward Gold trend?
We draw the Fibonacci projection trading indicator from chart point 1 to chart point 2 to chart point Three as shown and illustrated on Fibonacci projection trading gold example illustrated and explained below. Remember we always draw this Fibonacci projection tool in the direction of the trend. In the Fibonacci projection example illustrated and explained below, can you figure what direction we have drawn it? That's right - downward direction.
Try & spot the difference between how we have plotted Fibo projection levels trading gold indicator above and how Fibonacci Projection levels trading gold indicator is drawn below. This time you would also have used Fibonacci projection level 100.0%, just where the price reached as shown on the Fibonacci projection levels trading gold example illustrated and explained below. This would have been a good gold take profit area.
Drawing Fibonacci Projection Zones Trading XAUUSD Indicator on a Downward Gold Trend
From Fibonacci projection levels trading gold indicator example above, after drawing this Fibonacci projection levels trading gold tool there are 2 levels that are used to show the gold profit taking areas - these two Fibonacci projection levels are drawn as horizontal lines across the xauusd price chart marked as 61.8% Gold Trading Fibonacci Projection Level & 100% Fibonacci Projection Level.
Draw Fibonacci Projection Levels
