How Do You Draw XAUUSD Trading Fibonacci Expansion Indicator on XAUUSD Charts?

How Do You Draw Fibonacci Expansion Indicator on Gold Charts?

How Do You Draw XAUUSD Fib Expansion Levels on XAUUSD Charts?

Traders use XAUUSD Fib Expansion levels indicator to estimate where the trend movement will reach. There are Two important XAUUSD Fib Expansion areas: 61.8% and 100% XAUUSD Fib Expansion Areas, these are used for taking profit.

To draw XAUUSD Fib Expansion levels on the gold chart we wait until the gold price retracement is complete & the price starts to move in original direction of the XAUUSD trend. Where the gold price retracement reaches is used as chart point 3. Fib Expansion XAUUSD Indicator is drawn using three chart points as shown on the xauusd examples displayed below of how to draw the XAUUSD Fib Expansion Technical Indicator Tool.

The XAUUSD Fib Expansion xauusd example shown below shows the 3 Gold Chart Points where the XAUUSD Fib Expansion gold technical indicator is drawn, marked as Gold Chart point 1, Gold Chart point 2 & Gold Chart point 3.

Gold Chart point 1 is where the xauusd trend started, Gold Chart point 2 is where the xauusd trend pulled back and retraced and Gold Chart point 3 is where the price retracement reached as shown on the XAUUSD Fib Expansion Indicator Tool gold trading example shown below.

XAUUSD Trade with XAUUSD Fib Expansion? - How Do I Draw XAUUSD Fib Expansion Levels on XAUUSD Charts

Please note where these XAUUSD Fib Expansion zones are drawn - XAUUSD Fib Expansion zones are drawn above the Fibonacci xauusd technical indicator, these are the chart points where a trader will set the xauusd take-profit orders using these XAUUSD Fib Expansion Levels - 61.8% and 100.0% XAUUSD Fib Expansion Areas.

Drawing XAUUSD Fib Expansion Levels on an Upward XAUUSD Trend

We use XAUUSD Fib Expansion levels to estimate where the trend movement will reach. There are Two important XAUUSD Fib Expansion areas: 61.8%XAUUSD Fib Expansion Level and 100% XAUUSD Fib Expansion Level, these XAUUSD Fib Expansion Levels are used as xauusd taking profit levels.

On the XAUUSD Fib Expansion indicator xauusd example shown below you can see that the XAUUSD Fib Expansion technical indicator is drawn along the direction of the trend, since the trend is upward - the XAUUSD Fib Expansion indicator is drawn upwards.

These XAUUSD Fib Expansion areas are displayed as horizontal lines above the XAUUSD Fib Expansion gold technical technical indicator, showing profit taking areas. In the xauusd examples shown below if you had used of 100.0% XAUUSD Fib Expansion level you would have made nice profit from the xauusd trade setup.

Drawing XAUUSD Fib Expansion Indicator on an Upward XAUUSD Trend - XAUUSD Fib Expansion Trading Tool

From the above XAUUSD Fib Expansion indicator xauusd example, the upward trend continued and both 61.8% & 100.00% XAUUSD Fib Expansion levels were all hit after which gold price retraced again after getting to the 100.00% XAUUSD Fib Expansion level.

Drawing XAUUSD Fib Expansion Levels on a Downward XAUUSD Trend

Since we use the XAUUSD Fib Expansion indicator tool to estimate xauusd take profit levels, how do we draw XAUUSD Fib Expansion in a downward XAUUSD trend?

We draw the XAUUSD Fib Expansion tool from chart point 1 to chart point 2 to chart point 3 as shown on the xauusd examples shown below. Remember we always plot this XAUUSD Fib Expansion tool in the direction of the trend. In the XAUUSD Fib Expansion xauusd example shown below, can you figure what direction we have plotted it? That's right - downwards direction.

Try & spot difference between how we have drawn XAUUSD Fib Expansion indicator above and how XAUUSD Fib Expansion indicator is drawn below. This time you would also have used XAUUSD Fib Expansion level 100.0%, just where the price reached as illustrated on the xauusd example shown below. That would have been a good xauusd take profit area.

Drawing XAUUSD Fib Expansion Indicator on a Downward XAUUSD Trend - XAUUSD Fib Expansion Trading Tool

From the XAUUSD Fib Expansion indicator xauusd example above, after drawing this XAUUSD Fib Expansion xauusd tool there are 2 levels that are used to show the xauusd profit taking levels, these two XAUUSD Fib Expansion zones are drawn as horizontal lines across the gold chart marked as 61.8%XAUUSD Fib Expansion Level and 100% XAUUSD Fib Expansion Level.

How Do You Draw Fibonacci Expansion Indicator on Gold Charts?