How to Draw Gold Fibonacci Projection on Upwards Trend

Drawing Fibonacci Projection Zones on an Upwards Trend

We use Fib Projection levels to try to project where the trend move will reach and get to. There are two commonly used Fibonacci Projection levels: 61.8% Fib Projection Level and 100% Fib Projection Level, these Fibonacci Projection Levels are used for setting takeprofit levels.

On the Fibonacci Projection indicator illustration depicted and explained below you can see that the Fibonacci Projection technical tool is drawn along the direction of the trend, since the trend is upward - the Fibonacci Projection indicator is drawn upward.

These Fib Projection levels are displayed as horizontal lines above Fib Projection technical indicator, showing profit taking zones. In the examples displayed & described below if you had used the 100.00 % Fibonacci Projection level the you'd have made nice profit from the Gold trade setup.

How Do I Draw Fib Projection on Upward Trend? - How to Draw Fib Projection Areas on Up Trend

How Do I Draw Gold Fibonacci Projection on Upwards Trend

From the above Fibonacci Projection indicator example illustration, the upward trend continued & both 61.80% and 100.00% Fibonacci Projection levels were all hit after which the price retraced again after getting to the 100.0 % Fibo Projection level.

From the Fibonacci Projection indicator illustration above, after drawing this Fib Projection tool there are two levels which are used to show the booking profit zones, these two Fib Projection levels are drawn as horizontal lines across the gold chart marked as 61.8 %Fib Projection Level and 100% Fib Projection Level.

Explanation of How to Draw Fib Projection Areas on Charts

We use Fibonacci Projection levels to try to estimate where the trend move will reach and get to. There are Two critical Fibo Projection levels: 61.80% and 100 % Fibonacci Projection Levels, these are used for booking profit.

To plot Fib Projection areas on the gold chart we wait til the price retracement is complete & price begins to head in original and initial direction of trend. Where the price retracement reaches is used as point 3. Fib Projection Indicator is drawn using Three chart points as shown and illustrated on the illustrations displayed & described below of how to draw the Fibonacci Projection IndicatorTool.

The Fib Projection exemplification explained below shows the 3 Points where the Fib Projection indicator is drawn, labeled as Point 1, Chart point two & Chart point 3.

Point 1 is where gold trend started, Point 2 is where xauusd trend pulled back & retraced and Chart point 3 is where the gold retracement reached as displayed on the Fib Projection Indicator example illustration depicted & described below.

How to Draw Fib Projection on Upwards Trend - How Do I Draw Fib Projection on Up Trend

How Do I Draw Fib Projection Indicator on Upwards Trend

Please note where these Fib Projection levels are drawn - Fibonacci Projection levels are drawn above Fib indicator, these are the chart areas where a gold trader will set the take-profits using these Fib Projection Levels - 61.80 % and 100.00 % Fib Projection Zones.

Study More Topics & Lessons:

Trade Gold Trading

How to Draw Gold Fibonacci Projection on Upwards Trend

Drawing Fibonacci Projection Zones on an Upwards Trend

Explanation of How to Draw Fib Projection Areas on Charts