Fib Extension Gold MT4 Indicator
How to Use Fibo Extension in XAUUSD Trading
We use Fibo Extension Levels to project where trend move will reach. There are Two critical Fib Extension areas: 61.80% & 100% Fib Extension Areas, these are used for taking profit.
To draw Fibo Extension levels in MT4 chart we wait til the price retracement is complete & price starts to head in original direction of trend. Where the price pullback gets-to is used as point 3. Fib Extension MT4 Indicator is drawn using 3 chart points as illustrated on the example illustrated & described below of how to draw the Fibonacci Extension Indicator MetaTrader 4 Tool.
The Fibo Extension MT4 Indicator example illustrated & explained below shows the Three Chart Points where the Fibo Extension MT4 indicator is drawn, labeled as Point 1, Chart point 2 and Chart point 3.
Point 1 is where trend started, Point 2 is where trend pulled back & retraced and Chart point 3 is where the retracement reached as highlighted on the Fibo Extension MT4 Indicator Tool example shown and described below.
Fib Extension Gold Trading MT4 Indicator
Fib Extension Gold MT4 Indicator - Fibo Extension Calculation
Please note where these Fib Extension levels are drawn - Fibo Extension levels are plotted above MT4 Fibo indicator, these are chart areas where a trader will place take-profit orders using these Fibo Extension Levels - 61.80% & 100.00% Fibo Extension Levels.
Gold Fibo Extension MT4 Indicator
We use Fib Extension Levels to project where trend move will reach. There are Two critical Fibo Extension levels: 61.8% Gold Trading Fibonacci Extension Level & 100% Fib Extension Level, these Fib Extension Areas are used for taking profit.
On the Fibo Extension MT4 indicator example shown & described below you can see that the Fibo Extension MT4 technical indicator tool is drawn along the direction of the trend, since the trend is upward - the MT4 Fib Extension technical indicator is drawn up-wards.
These Fib Extension zones are shown as horizontal lines above the Fib Extension MetaTrader 4 xauusd indicator, showing profit booking zones. In the example illustrated & explained below if you had used 100.00% Fib Extension level the you would have made good profit from this trade setup.
Upward Trend - Fibonacci Extension Gold Trading MT4 Indicator
Fib Extension Calculator - How to Use Fibo Extension in Gold Trading
From the above Fibonacci Extension MT4 indicator example, the up-wards trend continued & both 61.8 % and 100.0% Fibonacci Extension zones were all hit after which price retraced again after getting to the 100.00% Fib Extension area.
XAUUSD Fib Extension MT4 Indicator
Since we use the Fibo Extension MT4 indicator tool to estimate take-profit levels, how do we draw MT4 Fib Extension in a downward trend?
We draw the Fib Extension MT4 indicator tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the examples displayed and described below. Remember we always draw this Fib Extension MT4 indicator in the direction of the trend. In the Fibonacci Extension examples illustrated & described below, can you determine what direction we have drawn it? That's right - downward direction.
Try & spot the difference between how we have plotted Fibo Extension indicator above and how Fib Extension technical indicator is drawn below. This time you'd also have used Fibo Extension level 100.00%, just where the price reached as cited on the examples illustrated & described below. That would have been a good area for taking profit.
Downward Trend - Fibonacci Extension Gold Trading MT4 Indicator
Fib Extension Calculator - How to Use Fib Extension in XAUUSD Trading
From Fib Extension MT4 indicator examples above, after drawing this MetaTrader 4 Fib Extension tool there are two levels that are used to show the taking profit zones, these 2 Fib Extension areas are drawn as horizontal lines across the price chart marked as 61.8 percent Gold Trading Fibonacci Extension Level & 100% Fibo Extension Level.
