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