How to Analyze Fibonacci Expansion Levels in XAUUSD

Read Fibonacci Expansion Levels in XAUUSD

Fibonacci expansion gold trading technical indicator is drawn using Three chart points.

To draw Fibonacci Expansion levels on gold charts 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.

The Fibonacci expansion xauusd example shown below shows the 3 Gold Chart Points where the Fibonacci expansion gold indicator is drawn, marked as Gold Chart point 1, 2 and 3. Gold Chart point 1 is where the xauusd trend started, Gold Chart point 2 is where the xauusd trend pulled back & retraced and Gold Chart point 3 is where the price retracement reached as shown on the Fibonacci Expansion XAUUSD Tool gold trading example below.

XAUUSD Trade with Fibonacci Expansion?

Please note where these Fibonacci Expansion zones are drawn on the gold chart - Fibo Expansion zones are plotted above the Fibonacci Gold Indicator, these are points where the trader will set the xauusd take profit orders using these Fibonacci Expansion Levels - 61.80% and 100% Fibo Expansion Areas.

Drawing Fib Expansion Levels on an Upward XAUUSD Trend

We use Fibo expansion areas to estimate where the market trend movement will get to. There are 2 important Fibonacci expansion levels: 61.8% and 100% Fibonacci Expansion Levels, these Fibonacci Expansion Levels are used for taking xauusd trading profit.

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

These Fibo expansion levels are displayed as horizontal lines above Fibonacci Expansion gold technical technical indicator, showing profit taking areas. In the xauusd example shown below if you had used of 100% Fibonacci expansion level you would have made nice xauusd trading profit from the xauusd trade setup.

Drawing Fib Expansion Levels on an Upward XAUUSD Trend - Fibonacci Expansion Strategies in XAUUSD

From the above Fibonacci expansion xauusd examples, the upward trend continued and both 61.8% & 100.0% Fibonacci expansion levels were all hit after which gold price retraced again after getting to the 100.0 % Fibonacci Expansion level.

Drawing Fib Expansion Levels on a Downwards XAUUSD Trend

Since we use this Fibonacci expansion xauusd tool to estimate xauusd take profit levels, how do we draw it in a downwards XAUUSD trend?

We draw the Fibonacci expansion indicator from chart point 1 to 2 to 3 as shown below. Remember we always plot this Fibonacci expansion xauusd tool in the direction of the trend. In the Fibonacci expansion xauusd example shown below, can you figure what direction we have drawn it? That is right - downwards direction.

Try & spot the difference between how we have drawn Fibonacci expansion levels above and how Fibonacci Expansion indicator is drawn below. This time you would also have used Fibonacci expansion level 100%, just where the price reached as illustrated on the xauusd example shown below. That would have been a nice xauusd take profit area.

Drawing Fib Expansion Levels on a Downward XAUUSD Trend - Fibonacci Expansion Strategies in XAUUSD

From the Fibonacci expansion xauusd example above, after drawing this Fibonacci expansion tool there are two levels that are used to show the xauusd profit taking areas, these two Fibonacci expansion levels on the xauusd indicator are drawn as horizontal lines across the gold price chart.

How Do I Analyze Fibo Expansion Levels in XAUUSD