How to Analyze Fibonacci Extension Levels on XAUUSD Charts
Read Fibonacci Extension Levels on XAUUSD Charts
To Calculate Fibo Extension levels on gold charts we use the Fib Extension Indicator
What are the Fibonacci Extension Levels in XAUUSD?
- 61.8% Fibo Extension Level
- 100% Fib Extension Level
We use Fibonacci extension levels to estimate where the price movement will reach. There are 2 important fibonacci extension levels in xauusd; 61.8% and 100% Fibonacci Extension levels, these level are used for taking profit.
To draw Fibonacci extension levels gold technical indicatorwe use 3 chart points.
To draw Fibonacci extension levels on the gold charts we wait until the gold price retracement is complete and gold price starts to move in original direction of the XAUUSD trend. Where the gold price retracement reaches is used as point 3.
The Fibonacci extension indicator xauusd example shown below shows the 3 Gold Chart Points where the Fibonacci extension indicator is drawn, marked as chart points 1, 2 and 3. Gold Chart point 1 is where the price trend started, Gold Chart point 2 is where the price trend retraced and chart point Marked 3 is where the price retracement reached as shown on the gold trading example shown below.
Interpret Fibonacci Extension Levels on XAUUSD Charts? - Fibonacci Extension XAUUSD Indicator Explained
The two Fibo extension levels 61.8% & 100% Fibonacci Extension levels were then drawn on the gold chart above the Fibonacci Extension XAUUSD Indicator as shown on the Fibonacci extension indicator xauusd example above.
How Do I Analyze Fibonacci Extension Levels on XAUUSD Charts
