How Do I Use XAUUSD Fib Retracement?

The Fibonacci retracement levels are explained below: traders should use this Fibo Retracement Levels indicator to determine where to open a trade whether a buy trade in a up trend and a sell xauusd trade in a downwards trend.

How Do I Use Fibo Retracement Levels for Day Trading?

How Do I Use Fibo Retracement Levels for Day Trading?

How Do I Use Fibo Retracement Levels for Day Trading? - Fib Retracement Tool Described

How Do I Use Fibo Retracement Levels for Day Trading? - Fib Retracement Tool Described

How Do You Use XAUUSD Fib Retracement?

In the technical analysis example illustrated & shown below price is moving up between chart point 1 and chart point 2 then after chart point 2 it retraces down to 50.0% retracement level then price continues moving up in the original upward trend. Note that this retracement indicator is plotted from point 1 to point 2 in the direction of the trend (Upwards Direction).

Technical Analysis of How to Use Fibo Retracement in an Up Trend

Technical Analysis of How to Use Fibo Retracement in an Up Trend

Once the price hit the 50.00 % retracement zone, this retracement level provided a lot of support for the price, & afterwards the market then resumed the original upward trend & continued to move up-wards.

For this technical analysis example, the price retracement reached the 50.0% retracement zone, but most of the time the market will retrace up to 38.2% retracement zone & therefore most of the time traders set their buy limit pending orders at 38.2% Fibo retracement level, while at same time placing a stop just below 61.8% Fibo retracement level.

How Do You Use XAUUSD Fib Retracement?

In the Retracement Strategy example shown below the market is moving down between chart point 1 & chart point 2, then after chart point two the price then retraces up to 38.2% retracement zone then it continues moving downwards in the original downward trend. Note that this retracement indicator is plotted from point 1 to point 2 in the direction of the trend (Down-ward Direction).

Technical Analysis of How to Use Fibo Retracement in a Down Trend

Technical Analysis of How to Use Fibo Retracement in a Down Trend

The above technical analysis example is a retracement trading set up where the price retraces immediately after touching the 38.2% Fibo Retracement Level.

In this technical analysis example the retracement of trading price reached 38.20% retracement level and did not get to 50.00% retracement level. It is always good to use 38.2% retracement level because most times the price retracement doesn't always get to 50.0% retracement level.

This Retracement level provided a lot of resistance for the price retracement, this was the best place for a trader to place a sell limit order as the market quickly moved down after hitting this price retracement zone.