How to Trade Retracement on Upward XAUUSD Trend

How Do You Draw Fibonacci Retracement for Gold Uptrend?

The Fibonacci retracement levels tool is placed on a xauusd chart in an upward xauusd trend market and this Fibonacci Retracement levels tool then calculates the gold price retracement levels for the upward trend on the gold chart. Fibonacci retracement levels tool is used by many traders as a xauusd trading retracement indicator.

In the Fibonacci Retracement Strategy example shown below the gold price is moving up between chart point 1 and chart point 2 then after chart point 2 gold price retraces down to 50.0% Fibonacci retracement level then gold price continues moving up in the original upward trend. Note that this Fibonacci retracement levels indicator is drawn from chart point 1 to chart point 2 in direction of the XAUUSD trend (Upward XAUUSD Trend Direction).

Because we know that this is just a gold price retracement based on our xauusd trend - using this Fibonacci retracement levels indicator - we place a buy xauusd order just between the levels - 38.2% Fibonacci retracement levels and 50.0% Fibonacci retracement levels and our stop loss order just below 61.8% Fibonacci retracement level.

How to Read a XAUUSD Retracement on an Upward XAUUSD Trend?

Explanation of XAUUSD Trading Fib Retracement Strategy Examples

Once the gold price hit the 50.0% Fibonacci price retracement level, this Fibonacci retracement level provided a lot of support for the gold price, & afterwards the gold price then resumed the original upward trend and continued to move upwards.

23.6% Fibonacci price retracement level provides minimum support for the xauusd trading retracement and is not an ideal place to place a gold trade order.

38.2% Fibonacci price retracement level provides some support but gold price in this xauusd example continued to retrace up to the 50% Fibonacci Retracement level.

50.0% Fibonacci price retracement level provides a lot of support for the gold price and in this xauusd example - this was the ideal place to place a buy xauusd trade order.

For this Fibonacci Retracement Strategy example - the gold price retracement reached the 50.0% Fibonacci price retracement level - but most of the times the gold price will retrace up to 38.2% Fibonacci price retracement level and therefore most of the time this is where xauusd traders set their buy limit orders at 38.2% Fibonacci price retracement level - while at the same time placing a stop loss order just below 61.8% Fibonacci price retracement level.

How Do I Analyze XAUUSD Retracement on an Upward XAUUSD Trend