XAUUSD Trading Draw Fibonacci Projection Zones on Downward XAUUSD Trend
XAUUSD Trading Draw Fibonacci Projection Zones on Downward XAUUSD 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 gold trading examples shown below. Remember we always plot 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 - downward direction.
As a trader you would also have used Fibonacci Projection level 100.0%, just where the price reached as illustrated on the Fibonacci Projection example shown below. That would have been a good xauusd take profit area.
XAUUSD Trading Draw Fibonacci Projection Zones on Downward XAUUSD Trend
From the Fibonacci Projection technical indicator tool example above, after drawing this Fibonacci Projection technical indicator tool there are 2 levels that are used to show the xauusd profit taking levels - these two Fibonacci Projection levels are represented as horizontal lines across the xauusd chart marked as 61.8% XAUUSD Trading Fib Projection Level and 100% Fibonacci Projection Level.
Interpretation of Trading Gold Draw Fibonacci Projection Zones on Gold Charts
XAUUSD traders Fibonacci Projection levels to estimate where the price movement will reach. There are 2 commonly used Fibonacci Projection levels: 61.8% Fibonacci Projection Level and 100% Fibonacci Projection Levels - these fibonacci projection levels are used for setting xauusd taking profit levels.
To plot Fibonacci Projection zones 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 Projection XAUUSD Indicator tool is drawn using three chart points as displayed on the Fibonacci projection gold trading example illustrated & shown below of how to draw the Fibonacci Projection Gold Indicator Tool.
The Fibo Projection example illustrated & shown below shows the 3 XAUUSD Chart Points where the Fibonacci Projection 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 shown on the Fib Projection Gold Indicator Tool example shown below.
XAUUSD Trading Draw Fibonacci Projection Zones on Downward XAUUSD Trend?
Please note where these Fib Projection levels are plotted - Fibonacci Projection zones are drawn above the Fibonacci xauusd technical indicator, these are the chart points where a trader will set the gold take-profit orders using these fib Projection Levels - 61.8% Fibonacci Projection Level and 100.0% Fibonacci Projection Level.
Draw Fib Projection Zones on Downwards XAUUSD Trend
