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 installing MetaTrader 4, go to the 'insert' menu located at the top left, click on the drop-down menu, select "Fib," and then choose either the Fibonacci retracement or expansion option. Subsequently, draw it according to the instructions provided in the prior tutorials on Extension and retracement, and then proceed with 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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