How Do You Draw Fibonacci Expansion Levels on Downward Gold Trend?
How Do You Draw Fibonacci Expansion Levels on Downward Gold Trend?
We draw the Fib Expansion indicator from chart point 1 to chart point 2 to chart point 3 as displayed on the Fibonacci expansion xauusd examples shown below. Remember we always plot this Fibonacci Expansion tool in the direction of the trend. In the Fibonacci Expansion example shown below, can you figure what direction we have plotted it? That's right - downwards direction.
As a trader you would also have used Fibonacci Expansion level 100.0%, just where the price reached as illustrated on the Fibonacci Expansion example shown below. That would have been a good xauusd take profit area.
How Do You Draw Fibonacci Expansion Levels on Downward Gold Trend?
From the Fibonacci Expansion tool example above, after drawing this Fibonacci Expansion indicator tool there are 2 levels that are used to show the xauusd profit taking levels - these two Fibonacci Expansion levels are represented as horizontal lines across the gold chart marked as 61.8% XAUUSD Trading Fib Expansion Level & 100% Fibonacci Expansion Level.
Interpretation of How Do You Draw Fibonacci Expansion Levels on Gold Charts?
XAUUSD traders Fibonacci Expansion levels to estimate where the price movement will reach. There are 2 commonly used Fibonacci Expansion areas: 61.8% Fibonacci Expansion Level and 100% Fibonacci Expansion Levels - these fibonacci expansion levels are used for setting xauusd taking profit levels.
To draw Fibonacci Expansion levels on the gold 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 Expansion XAUUSD Indicator tool is drawn using three chart points as shown on the Fib expansion xauusd examples displayed below of how to draw the Fibonacci Expansion Gold Indicator Tool.
The Fibonacci Expansion example shown below shows the 3 XAUUSD Chart Points where the Fibonacci Expansion gold technical indicator is drawn, marked as XAUUSD Chart point 1, XAUUSD Chart point 2 & 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 and XAUUSD Chart point 3 is where the xauusd retracement reached as displayed on the Fibonacci Expansion Gold Indicator Tool example shown below.
How Do You Draw Fibonacci Expansion Levels on Downward Gold Trend?
Please note where these Fib Expansion zones are drawn - Fibo Expansion zones are drawn above the Fib xauusd technical indicator, these are the chart points where a trader will set the xauusd take-profit orders using these Fibonacci Expansion Levels - 61.8% Fibonacci Expansion Level and 100.0% Fibo Expansion Level.
How Do You Draw Fibonacci Expansion Levels on Downward Gold Trend?
