How Do You Draw XAUUSD Trading Fib Extension Levels Platform?
How Do You Draw Gold Trading Fibonacci Extension Levels Platform?
Traders use Fibonacci extension levels to estimate where the trend movement will reach. There are two commonly used Fibonacci extension levels - 61.8% Fibonacci Extension Level and 100% Fibonacci Extension Levels, these fibonacci extension levels are used for setting xauusd take profit areas.
To draw Fibonacci Extension levels on the xauusd chart we wait until the gold price retracement is complete & the price starts to move in original direction of the trend. Where the gold price retracement reaches is used as chart point 3. Fibonacci Extension XAUUSD Indicator is drawn using three chart points as illustrated on the Fibonacci extension gold trading example illustrated & shown below of how to draw the Fibonacci Extension Technical Indicator.
The Fibo extension example illustrated & shown below shows 3 XAUUSD Chart Points where the Fibonacci extension gold indicator is drawn, marked as XAUUSD Chart point 1, XAUUSD Chart point 2 & XAUUSD Chart point 3.
XAUUSD Chart point 1 is where the xauusd trend started, XAUUSD Chart point 2 is where the xauusd trend pulled back & retraced and XAUUSD Chart point 3 is where the xauusd retracement reached as shown on the Fibonacci Extension Gold Indicator example shown below.
How Do You Draw Fibonacci Extension Levels? - How Do You Draw Fibonacci Extension Levels?
Please note where these Fibo Extension levels are plotted - Fibonacci Extension zones are plotted above the Fibo xauusd technical indicator, these are the chart points where a trader will set the xauusd take profit orders using these Fib Extension Levels - 61.8% & 100.0% Fibo Extension Levels.
Drawing Fib Extension Zones on an Upward XAUUSD Trend
We use Fibo expansion areas to estimate where the market trend movement will get to. There are two commonly used Fibonacci extension levels: 61.8%Fibonacci Extension Level and 100% Fib Extension Level, these Fib Extension Levels are used for taking profit.
On the Fibonacci extension indicator example illustrated & shown below you can see that the Fibonacci extension technical indicator is drawn along the direction of the trend, since the trend is upward - the Fibonacci extension levels indicator is drawn upwards.
These Fibo extension levels are displayed as horizontal lines above Fibonacci Extension gold trading technical indicator, showing xauusd profit taking areas. In the gold trading example illustrated & shown below if you as a trader had used of 100.0% Fibonacci extension level you would have made nice profit from the trade setup.
Drawing Fibonacci Extension Levels Gold Indicator on an Upward XAUUSD Trend
From the above Fibonacci extension indicator examples, the upwards trend continued & both 61.8% & 100.0% Fibonacci extension levels were all hit after which gold price retraced again after getting to the 100.00% Fibo Extension level.
Drawing Fib Extension Areas on a Downwards XAUUSD Trend
Since we use the Fibonacci extension indicator tool to estimate xauusd take profit levels, how do we draw Fibonacci Extension in a downward XAUUSD trend?
We draw the Fibonacci extension tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the Fibonacci extension gold trading examples illustrated below. Remember we always plot this Fibonacci extension tool in the direction of the trend. In the Fibonacci extension example shown below, can you figure what direction we have plotted it? That's right - downwards direction.
Try & spot the difference between how we have drawn Fibonacci extension levels indicator above and how Fibonacci Extension levels indicator is drawn below. This time you would also have used Fibonacci extension level 100.0%, just where the price reached as illustrated on the Fibonacci extension levels gold trading example shown below. This would have been a good xauusd take profit area.
Drawing Fibonacci Extension Levels Gold Indicator on a Downward XAUUSD Trend
From the Fibonacci extension levels indicator example above, after drawing this Fibonacci extension levels xauusd tool there are 2 levels that are used to show the xauusd profit taking areas - these two Fibonacci extension levels are drawn as horizontal lines across the gold price chart marked as 61.8% Gold Trading Fibo Extension Level and 100% Fibonacci Extension Level.
How Do You Draw Gold Trading Fibonacci Extension Levels Platform?
