How Do I Draw Fib Expansion Indicator on Charts?
How Do You Draw Fibonacci Expansion Indicator on Charts?
How Do You Draw Fib Expansions on Charts?
Traders use XAUUSD Fib Expansion levels indicator to estimate where the trend movement will get to. There are Two crucial XAUUSD Fibo Expansion areas: 61.8% and 100% XAUUSD Fib Expansion Areas, these are used for profit taking.
To draw XAUUSD Fib Expansion levels on the chart we wait til the price retracement is complete & the price begins heading in original direction of trend. Where the price pull back gets-to is used as point 3. Fib Expansion Indicator is drawn using 3 chart points as shown on the examples displayed below of how to draw the XAUUSD Fib Expansion Technical IndicatorTool.
The XAUUSD Fib Expansion example shown below shows the 3 Chart Points where the XAUUSD Fib Expansion indicator is drawn, marked as Chart point 1, Chart point 2 & Chart point 3.
Chart point 1 is where trend started, Chart point 2 is where trend pulled back & retraced and Chart point 3 is where the price retracement reached as shown on the XAUUSD Fib Expansion Indicator Tool trading example shown below.
Trade with Fib Expansion? - How Do I Draw Fib Expansions on Charts
Please note where these XAUUSD Fibo Expansion zones are drawn - XAUUSD Fibo Expansion zones are drawn above the Fibonacci indicator, these are the chart levels where a trader will set the take-profit orders using these XAUUSD Fibo Expansion Levels - 61.8% and 100.0% XAUUSD Fibo Expansion Areas.
Drawing XAUUSD Fib Expansions on an Upward Trend
We use XAUUSD Fibo Expansion levels to project where the trend movement will get to. There are Two crucial Gold Fibo Expansion areas: 61.8%XAUUSD Fibo Expansion Level and 100 % Gold Fibo Expansion Level, these XAUUSD Fib Expansion Levels are used as xauusd taking profit zones.
On the XAUUSD Fibo Expansion indicator tool 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 Fibo Expansion indicator tool is drawn upwards.
These XAUUSD Fib Expansion areas are displayed as horizontal lines above the XAUUSD Fib Expansion indicator, showing profit booking zones. In the examples shown below if you had used of 100.0% XAUUSD Fib Expansion level you would have made nice profit from the trade setup.
Drawing XAUUSD Fib Expansion Indicator on an Upward Trend - XAUUSD Fibo Expansion Trading Tool
From the above XAUUSD Fibo Expansion indicator tool xauusd example, the upward trend continued and both 61.8% & 100.00% XAUUSD Fib Expansion levels were all hit after which price retraced again after getting to the 100.00 % XAUUSD Fib Expansion level.
Drawing XAUUSD Fib Expansions on a Downward Trend
Since we use the XAUUSD Fibo Expansion indicator tool to estimate take profit zones, how do we draw XAUUSD Fib Expansion in a downward trend?
We draw the XAUUSD Fib Expansion tool from chart point 1 to chart point 2 to chart point 3 as shown on the examples shown below. Remember we always draw this Fib Expansion tool in the direction of the trend. In the XAUUSD Fib Expansion example shown below, can you figure what direction we have plotted it? That's right - downward direction.
Try & spot difference between how we have drawn XAUUSD Fibo Expansion indicator tool above and how XAUUSD Fibo Expansion indicator tool is drawn below. This time you would also have used XAUUSD Fib Expansion level 100.0%, just where price reached as depicted on the example shown below. That would have been a good takeprofit zone.
Drawing XAUUSD Fib Expansion Indicator on a Downwards Trend - XAUUSD Fibo Expansion Trading Tool
From the XAUUSD Fibo Expansion indicator tool xauusd example above, after drawing this Fib Expansion tool there are 2 levels that are used to show the profit taking levels, these two XAUUSD Fib Expansion zones are drawn as horizontal lines across the chart marked as 61.8 %XAUUSD Fibo Expansion Level and 100 % Gold Fibo Expansion Level.
How Do I Draw Fibonacci Expansion Indicator on Charts?
