How Do I Trade with Fibonacci Retracement?
Fibonacci Retracement is an indicator used in gold trading to calculate xauusd price retracement levels in an upward or a downward xauusd trend.
Fibonacci retracement levels are used by traders to place xauusd trades and open xauusd trades at a better price after xauusd price has resumed moving in the original gold trend direction after retracing.
What are XAUUSD Trading Fib Retracement Zones?
- 23.6% XAUUSD Trading Fib Retracement
- 38.2% Gold Trading Fibonacci Retracement
- 50.0% Gold Trading Fibonacci Retracement
- 61.8% Fibonacci Retracement
38.20% and 50.00% Fibo Retracement Levels are most oftenly used
most of the times this is where price retracement will reach - with 38.2% Fibo Retracement Level being the most popular & most widely used retracement level in gold.
61.8% Fibonacci Retracement Level is also commonly used to set stop loss for trades opened using this gold trading retracement strategy.
What is Fib Retracement Strategy using Fibo Retracement Levels?
What is Fib Retracement Strategy using Fibo Retracement Levels?
Fibo Retracement Strategies in Gold Trading
Fibo Retracement Strategies in Gold Trading
How Do I Draw Gold Trading Fibonacci Retracements?
Fibo Retracement Levels tool indicator is plotted in direction of the trend as displayed in the 2 Fibonacci retracement example below:.
XAUUSD Upwards Trend Trading Strategy
In the technical analysis example illustrated and explained below the xauusd price is moving up between chart point 1 & chart point 2 then after chart point 2 it retraces down to 50.0% retracement level then xauusd price continues moving up in the original upwards trend. Note that this retracement indicator is drawn from point 1 to point 2 in direction of the Gold trend (Upwards Direction).
Fibonacci Retracement in an Up Gold Trend
Fibonacci Retracement Strategy using Fibonacci Retracement Levels in an Up Gold Trend
Once the xauusd price hit the 50.00% retracement level, this retracement level provided a lot of support for xauusd price, & afterwards xauusd market then resumed the original upwards trend & continued to move upward.
For this Fibonacci retracement strategy example, the xauusd price retracement reached the 50.0% retracement level, but most of the time the xauusd market will retrace up to 38.2% retracement level and therefore most of the time gold traders set their buy limit pending orders at the 38.2% Fibonacci retracement level, while at the same time placing a stop just below 61.8% Fibonacci retracement level.
XAUUSD Downward Trend Trading Strategy
In the Fibonacci retracement strategy example illustrated and explained below the xauusd market is heading downwards between chart point 1 and chart point 2, then after chart point 2 the xauusd price then retraces up to 38.2% retracement level then it continues moving downwards in original downwards trend. Note that this retracement indicator is drawn from point 1 to point 2 in direction of the Gold trend (Downwards Direction).
Fibonacci Retracement in a Down Gold Trend
Fibonacci Retracement Strategy using Fibonacci Retracement Levels in a Down Gold Trend
The above Fib retracement strategy example is a gold retracement trading set up where the price retraces immediately after touching the 38.20% XAUUSD Chart Fibo Retracement Level.
In this Fibo retracement strategy examples the retracement of xauusd price reached 38.2% retracement level & did not get to 50.0% retracement level. It is always good to use 38.20% retracement level because most times the xauusd price retracement does not always get to 50.00% retracement level.
This Gold Retracement level provided a lot of resistance for the xauusd price retracement, this was the best place for a trader to set a sell limit pending order as a xauusd market quickly moved down after hitting this xauusd price retracement level.
