How to Draw Gold Fibonacci Projection on Upwards Trend

Drawing Fib Projection Zones on an Upwards Trend

We use Fibonacci 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% Fibonacci Projection Level & 100% Fib Projection Level, these Fibonacci Projection Levels are used for setting takeprofit levels.

On the Fib Projection indicator illustration depicted & 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 Fib Projection indicator is drawn upward.

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

How Do I Draw Gold Fibonacci Projection on Upwards Trend

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

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

Explanation of How to Draw Fibonacci 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 Fibonacci Projection levels: 61.80% and 100 % Fibonacci Projection Levels, these are used for booking profit.

To plot Fibonacci 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. Fibonacci Projection Indicator is drawn using Three chart points just as is shown on the illustrations displayed & described below of how to draw the Fibonacci Projection IndicatorTool.

The Fib Projection exemplification described below shows the 3 Points where the Fibonacci Projection indicator is drawn, marked as Point 1, Chart point 2 and Chart point 3.

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

How Do You Draw Fibonacci 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 % Fibonacci Projection Zones.

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