Fib XAUUSD Exercises

These practice exercises are designed to offer further illustrations of how price retracements and expansions occur. The initial exercise involves first ascertaining the overall direction of the trend, then deciding whether the Fibonacci tool being employed is for retracement or expansion, followed by understanding its drawing methodology, and finally practicing its application on a chart.

Tasks:

1. Determine the direction of the trend
2. Determine if Fibonacci is retracement or expansion
3. Figure out how it's drawn
4. Practice drawing retracement or extension on a trading chart.

To locate a chart, simply download the MT4 platform from any of the numerous brokers available.

After you've downloaded MetaTrader 4, Go to the menu 'insert' at tops left corner, on the drop-down menu, click Fib and choose and select either the option of Fibonacci retracement or expansion. Then draw it as described in the previous tutorials of Extension & retracement. Then do the following exercises:

Retracements and Extensions levels Exercise

Exercises 1:

Exercises 2:

Exercises 3:

Exercises 4:

Exercises 5:

Hint: point 1 to point 2 follows trend direction

Hint: Fibonacci Retracement has points 1 & 2

Hint: Extension has point 1, 2 & 3

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