How to Draw Gold Fibonacci Projection on Upwards Gold Trend
Drawing Fibonacci Projection Zones on an Upwards Gold Trend
We use Fibo Projection levels to estimate where the market trend movement will reach. There are 2 commonly used Fibonacci Projection levels: 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level, these Fibonacci Projection Levels are used for setting take profit levels.
On the Fibonacci Projection technical indicator example illustrated and explained below you can see that the Fibonacci Projection technical indicator tool is drawn along the direction of the trend, since the trend is up - the Fibonacci Projection technical indicator is drawn upward.
These Fibonacci Projection levels are displayed as horizontal lines above Fibonacci Projection technical indicator, showing profit taking areas. In the xauusd trading examples illustrated and explained below if you had used the 100.00% Fibo Projection level the you would have made nice profit from the trade setup.
How to Draw Gold Fibonacci Projection on Upwards Gold Trend
From the above Fibonacci Projection technical indicator tool example, the upward trend continued & both 61.80% and 100.00% Fibonacci Projection levels were all hit after which the xauusd price retraced again after getting to the 100.00% Fibo Projection level.
From the Fibonacci Projection technical indicator tool example above, after drawing this Fibonacci Projection tool there are 2 levels that are used to show the profit-taking areas, these two Fibonacci Projection levels are plotted as horizontal lines across the gold chart marked as 61.8%Fibo Projection Level and 100% Fibonacci Projection Level.
Explanation of How to Draw Fibonacci Projection Zones on Gold Charts
We use Fibonacci Projection levels to estimate where the market trend movement will reach. There are Two important Fib Projection levels: 61.80% & 100% Fibonacci Projection Levels, these are used for profit taking.
To plot Fibonacci Projection zones on the gold 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 Projection Technical Indicator is drawn using Three chart points as shown and illustrated on the xauusd examples illustrated and described below of how to draw the Fibonacci Projection Indicator Tool.
The Fibonacci Projection example described below shows the Three Chart Points where the Fibonacci Projection technical indicator is drawn, marked as Chart point 1, Chart point 2 & Chart point 3.
Chart point 1 is where the gold trend started, Chart point 2 is where the gold trend pulled back & retraced and Chart point 3 is where the gold retracement reached as displayed on the Fibonacci Projection Technical Indicator Tool example illustrated & explained below.
How to Draw Fib Projection Indicator on Upwards Gold Trend
Please note where these Fibonacci Projection levels are plotted - Fibonacci Projection levels are plotted above Fibonacci technical indicator, these are the chart points where a trader will set the take profit orders using these Fib Projection Levels - 61.80% & 100.00% Fibo Projection Zones.
