XAUUSD Draw Fibo Projection Zones on Down-wards Trend
XAUUSD Draw Fibo Projection Zones on Down-wards Trend
We draw the Fibo Projection tool from chart point 1 to chart point 2 to chart point Three as illustrated and shown on Fibonacci projection examples shown below. Remember we always draw this Fibo Projection tool in the direction of the market trend. In the Fibo Projection example illustrated & shown below, can you figure what direction we have plotted it? That's right - downwards direction.
As a trader you'd also have used Fibonacci Projection level 100.0 %, just where the price reached as shown on the Fibo Projection example shown below. That would have been a good takeprofit zone.
XAUUSD Draw Fibo Projection Zones on Down-wards Trend
From the Fib Projection technical indicator tool example above, after drawing this Fibo Projection technical indicator tool there are two levels that are used to show the profit taking levels - these two Fibo Projection areas are represented as horizontal lines across the chart marked as 61.8% XAUUSD Fib Projection Level and 100% Fib Projection Level.
Interpretation of Trading Draw Fibo Projection Zones on Charts
Traders Fibo Projection levels to estimate where the price move will reach. There are two commonly used Fibonacci Projection areas: 61.8 % Fibonacci Projection Level and 100% Fibo Projection Levels - these fibonacci projection levels are used for setting xauusd taking profit zones.
To draw Fibo Projection zones on the chart we wait til the price retracement is complete & the price begins heading in original direction of trend. Where the price pull back gets-to is used as point 3. Fibo Projection Indicator tool is drawn using three chart points as displayed on the Fibonacci projection example illustrated & shown below of how to draw the Fibo Projection IndicatorTool.
The Fibo Projection example illustrated & displayed below shows the 3 Chart Points where the Fibo Projection indicator is plotted, marked as Chart point 1, Chart point 2 & Chart point 3.
Chart point 1 is where trend started, Chart point 2 is where price pulled back and retraced & Chart point 3 is where the retracement reached as illustrated on the Fib Projection Indicator Tool example shown below.
XAUUSD Draw Fibo Projection Zones on Down-ward Trend?
Please note where these Fib Projection levels are plotted - Fibo Projection zones are drawn above the Fibonacci technical indicator, these are the chart levels where a trader will set the take-profit orders using these fib Projection Levels - 61.8% Fibo Projection Level & 100.0% Fibo Projection Level.
Draw Fib Projection Zones on Downwards Trend
