How to Draw Gold Fibonacci Projection on Upwards Trend

Drawing Fib Projection Zones on an Upwards Trend

We use Fib Projection levels to try to project where trend move will reach. 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 technical indicator example depicted 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 upward - the Fibonacci Projection technical indicator is drawn upward.

These Fibonacci Projection levels are displayed as horizontal lines above Fib Projection technical indicator, showing profit booking zones. In the examples displayed & described below if you had used the 100.00 percentage% Fibonacci Projection level the you'd have made nice profit from the 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, 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 technical indicator example above, after drawing this Fib Projection tool there are two levels which are used to show the taking 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 trend move will reach. There are Two critical Fibo Projection levels: 61.80% and 100 % Fibonacci Projection Levels, these are used for taking profit.

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

The Fib Projection example explained below shows the 3 Points where the Fibonacci Projection technical 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 Fibonacci Projection Technical Indicator example 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 Technical 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 and Lessons:

Trade Gold Trading

How to Draw Gold Fibonacci Projection on Upwards Trend

Drawing Fib Projection Zones on an Upwards Trend

Explanation of How to Draw Fib Projection Areas on Charts