61.8% XAUUSD Trading Fib Extension Level
We use Fibonacci extension levels to estimate where the xauusd trend gold price movement will reach. There are 2 important Fibonacci extension levels: 61.8% Fibonacci Extension Level and 100% Fibonacci Extension Level - these fibonacci extension levels are used for setting xauusd taking profit orders.
61.8% XAUUSD Trading Fib Extension Level
61.8 Fibonacci Extension Level is the most commonly used xauusd profit taking level when trading using the Fibonacci Extension Technical Indicator.
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 the examples displayed below of how to draw the Fibonacci Extension Levels Indicator.
The Fibo extension example illustrated & shown below shows 3 XAUUSD Chart Points where the Fibonacci extension indicator is drawn - marked as XAUUSD Chart point 1, XAUUSD Chart point 2 and XAUUSD Chart point 3.
XAUUSD Chart point 1 is where the xauusd trend started, XAUUSD Chart point 2 is where the price pulled back and retraced - XAUUSD Chart point 3 is where the price retracement reached as shown on the Fibonacci Extension Levels Gold Indicator example shown below.
The First Fib Extension Level is the 61.8 Fibonacci Extension Level shown on the Fibonacci Extension indicator example Below Used to Set Take Profit XAUUSD Orders
How to Read 61.8% Fibonacci Extension Level
Please note where these Fibonacci Extension levels are plotted on the xauusd chart - Fib Extension zones are plotted above the Fibo Extension indicator - these are the chart points where a trader will place the xauusd take profit orders using these Fibonacci Extension Levels - 61.8% Fibonacci Extension Levels.
Analyze 61.8% Fibonacci Extension Level?
