How Do You Draw Fib Extension Levels on Upward XAUUSD Trend?
How Do You Draw Fib Extension Levels on Upward XAUUSD Trend?
We use Fibonacci Extension levels to estimate where the trend movement will reach. There are 2 oftenly used Fibo Extension areas: 61.80%Fibonacci Extension Level and 100% Fib Extension Level, these Fibonacci Extension Levels are used for setting xauusd take profit areas.
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 up - the Fibo Extension technical indicator is plotted upward.
These Fibo Extension zones are displayed as horizontal lines above the 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 good profit from using this trading setup.
How Do You Draw Fib Extension Levels on Upward XAUUSD Trend?
From the above Fibonacci Extension indicator tool example, the upward trend continued and both 61.8% & 100.0% Fibo Extension zones were all hit after which the gold price retraced again after getting to the 100.00% Fibonacci Extension level.
From the Fibonacci Extension tool example above, after drawing this Fibonacci Extension tool there are two levels that are used to show the xauusd profit taking areas, these two Fibonacci Extension levels are plotted as horizontal lines across the xauusd chart marked as 61.8%Fibonacci Extension Level and 100% Fib Extension Level.
Explanation of How Do You Draw Fibonacci Extension Levels on Gold Charts?
We use Fibonacci Extension Areas to estimate where the market trend movement will reach. There are Two important Fib Extension areas: 61.80% and 100% Fibonacci Extension Levels, these are used for taking profit.
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 XAUUSD 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 Fibonacci Extension example shown below shows the 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 Fib Extension Levels on Upward XAUUSD Trend?
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.
How Do You Draw Fib Extension Levels on Upward XAUUSD Trend?
