How to Analyze the Difference between Fibonacci Retracement Levels and Fibonacci Extension Levels in XAUUSD
How to Read the Difference between Fibonacci Retracement Levels and Fibonacci Extension Levels in XAUUSD
Fibonacci Retracement Levels in XAUUSD
Fibonacci retracement is plotted between 2 chart points but Fib extension is plotted using 3 chart points.
Fibonacci Retracement Level xauusd example shown below where the xauusd trend is moving down between Gold Chart point 1 and Gold Chart point 2, then after Gold Chart point 2 the gold price retraces then it continues moving upwards in the original upward trend. Note that this Fibonacci Retracement Levels indicator is drawn from Gold Chart point 1 to Gold Chart point 2 in the direction of the trend.
Fibonacci Retracement Levels - How Do You Draw Fibo Retracement Levels
Fibonacci Extension Levels in XAUUSD
Fibonacci retracement is plotted between 2 chart points but Fib extension is plotted using 3 chart points.
To draw these Fibonacci Extension levels 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 for fibonacci extension in xauusd.
The Fibonacci Extension xauusd example shown below shows the 3 xauusd chart Points where the Fibonacci Extension indicator is drawn, marked as chart points 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 and retraced and Gold Chart point 3 is where the price retracement reached as shown on the Fibonacci Extension gold trading example shown below.
Fibonacci Extension Levels - How Do You Draw Fibo Extension Zones
Please note where these Fibonacci Extension levels are plotted - Fibonacci Extension zones are drawn above the Fibonacci Extension indicator, these are the points where a trader will set the xauusd take profit orders.
How Do I Interpret the Difference between Fibonacci Retracement Levels and Fibonacci Extension Levels in XAUUSD
