How Do You Draw Fibonacci Expansion Levels on Upward Gold Trend?
How Do You Draw Fibonacci Expansion Levels on Upward Gold Trend?
We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 oftenly used Fibonacci Expansion areas: 61.8%Fibonacci Expansion Level and 100% Fibonacci Expansion Level, these Fibonacci Expansion Levels are used for setting xauusd take profit areas.
On the Fibonacci Expansion indicator example illustrated & shown below you can see that the Fibonacci Expansion technical indicator is drawn along the direction of the trend, since the trend is up - the Fibonacci Expansion indicator is drawn upwards.
These Fibo Expansion areas are displayed as horizontal lines above the Fibonacci Expansion gold trading technical indicator, showing xauusd profit taking areas. In the xauusd examples illustrated below if you had used of 100.00% Fibonacci Expansion level you would have made a good profit from the trade setup.
How Do You Draw Fibonacci Expansion Levels on Upward Gold Trend?
From the above Fibonacci Expansion indicator tool example, the upward trend continued and both 61.8% & 100.0% Fibonacci Expansion levels were all hit after which the gold price retraced again after getting to the 100.00% Fibonacci Expansion level.
From the Fibonacci Expansion tool example above, after drawing this Fibonacci Expansion tool there are two levels that are used to show the xauusd profit taking areas, these two Fibo Expansion zones are drawn as horizontal lines across the gold chart marked as 61.8%Fibonacci Expansion Level and 100% Fibo Expansion Level.
Explanation of How Do You Draw Fibonacci Expansion Levels on Gold Charts?
We use Fibo Expansion levels to estimate where the trend movement will reach. There are 2 important Fib Expansion areas: 61.8% & 100% Fibo Expansion Areas, these are used for taking profit.
To draw Fibonacci Expansion 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 Expansion XAUUSD Indicator is drawn using three chart points as illustrated on the Fibonacci 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 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 xauusd trend pulled back & retraced and XAUUSD Chart point 3 is where the xauusd retracement reached as shown on the Fibonacci Expansion Gold Indicator Tool example shown below.
How Do You Draw Fibonacci Expansion Levels on Upward Gold Trend?
Please note where these Fib Expansion zones are drawn - Fibo Expansion zones are plotted above the Fib xauusd technical indicator, these are the chart points where a trader will set the xauusd take profit orders using these Fib Expansion Levels - 61.80% and 100.00% Fibonacci Expansion Areas.
How Do You Draw Fibonacci Expansion Levels on Upward Gold Trend?
