Gold Draw Fib Projection Zones on Upwards Trend
How Do I Draw Fib Projection Zones on Upward XAUUSD Trend?
We use Fibo Projection levels to estimate where the trend movement will get to. There are two commonly used Fibo Projection areas: 61.8% Fibonacci Projection Level and 100% Fib Projection Level, these Fib Projection Levels are used for setting takeprofit levels.
On the Fibo Projection indicator example shown & described below you can see that the Fibo Projection trade technical indicator is drawn along the direction of the trend, since the trend is up - the Fibo Projection technical indicator is drawn upwards.
These Fib Projection levels are displayed as horizontal lines above the Fibo Projection trading technical indicator, showing profit taking areas. In the trading example illustrated & explained below if you had used 100.0% Fib Projection level you would have made nice profit from using this setup.
Gold Draw Fib Projection Zones on Upwards Trend
From the above Fib Projection technical indicator tool example, the upward trend continued & both 61.80% and 100.00% Fib Projection levels were all hit after which the price retraced again after getting to the 100.00% Fibonacci Projection area.
From Fib Projection technical indicator tool example above, after drawing this Fib Projection tool there are two levels that are used to show the profit taking areas, these two Fib Projection areas are plotted as horizontal lines across the trading chart marked as 61.8%Fibo Projection Level and 100% Fib Projection Level.
Explanation of Trading Draw Fib Projection Zones on XAUUSD Charts
We use Fib Projection levels to try to project where the price trend movement will get to. There are Two critical Fib Projection levels: 61.80 % & 100% Fibonacci Projection Levels, these are used for profit taking.
To plot Fib Projection levels on the trading chart we wait until the price retracement is complete and price starts to move in original direction of the market trend. Where the price retracement reaches is used as chart point 3. Fibonacci Projection Trading Indicator is drawn using Three chart points as shown and illustrated on Fibonacci projection example shown & described below of how to draw the Fibo Projection Technical IndicatorTool.
The Fibo Projection examples illustrated & explained below shows the Three XAUUSD Chart Points where the Fib Projection technical indicator is drawn, labeled as Chart point 1, Chart point 2 and Chart point 3.
Point 1 is where the trend started, Point 2 is where the market trend pulled back & retraced & Chart point 3 is where the retracement reached as shown and illustrated on the Fibo Projection Trading Indicator Tool example shown & explained below.
Interpret and Draw Fib Projection Zones on Upward Trend?
Please take note where these Fibo Projection levels are drawn - Fibo Projection levels are drawn above the Fibonacci trading indicator, these are the chart points where a trader will set xauusd takeprofit orders using these fibonacci Projection Levels - 61.8% & 100.0% Fib Projection Levels.
Draw Fib Projection Zones on Upwards Trend
Get More Courses and Topics:
- How Do You Know When a XAU USD Trend is Starting?
- How to Build Technical Indicator Trade Strategy
- Why Does XAUUSD Market Close for an Hour?
- Best XAU/USD Indicators Combination & Best XAU/USD Indicators Guide
- What Does it Mean to Go Long a XAUUSD instrument?
- The Best Way to Start Learning Gold
- Gold Use Gold Sell Limit Order on MT4 Platform
