How to Use Fibo Extension Levels
We use Fibo Extension Areas to try to estimate where trend movement will get to. There are two important Fib Extension areas: 61.8% and 100% Fibo Extension Areas, these are used for taking profit.
To draw Fib Extension levels on the MT4 chart we wait til the gold price retracement is complete and the gold price starts heading in original direction of trend. Where the gold price pullback gets-to is used as point 3. Fibo Extension MetaTrader 4 Indicator is drawn using 3 chart points as displayed on the examples displayed below of how to draw the Fibonacci Extension Indicator MetaTrader 4 Tool.
The Fibo Extension MetaTrader 4 Indicator example shown below shows the 3 Chart Points where the Fibo Extension MetaTrader 4 indicator is plotted, labeled as Point 1, Chart point two & Chart point 3.
Point 1 is where trend started, Point 2 is where trend pulled back and retraced and Chart point 3 is where the retracement reached as portrayed on the Fibo Extension MetaTrader 4 Indicator Tool example illustrated below.
How Do I Use Fibo Extension in XAUUSD Guide
How Do I Use Fibo Extension in Tutorial - How Do I Use Fibonacci Extensions - Fibo Extension Guide
Please note where these Fibo Extension levels are plotted - Fibo Extension zones are drawn above the MT4 Fibonacci technical indicator, these are the chart levels where a trader will set the take-profit orders using these Fibonacci Expansion Levels - 61.8% & 100.0% Fib Extension Levels.
Upward Trend - How to Use Fibo Extension in Tutorial - How to Use Fibonacci Expansion Levels - Fibo Extension PDF
We use Fibo Extension Areas to try to estimate where trend movement will get to. There are two important Fib Extension areas: 61.8%Fibo Extension Level and 100% Fibo Extension Level, these Fib Extension Areas are used for taking profit.
On the Fibonacci Extension MT4 indicator example illustrated & shown below you can see that the Fibo Extension MetaTrader 4 technical indicator is drawn along the direction of the trend, since the trend is upwards - the MT4 Fibo Extension indicator is plotted upwards.
These Fib Extension levels are shown as horizontal lines above the Fibo Extension MetaTrader 4 technical technical indicator, showing taking profit levels. In the examples shown below if you had used of 100.0 % Fibo Extension level the you would have made good profit from this setup.
Up-wards Trend - How to Use Fibo Extension in XAUUSD Guide
How to Use Fibonacci Expansion Levels - XAUUSD Fib Extension Tutorial
From the above Fibonacci Extension MT4 indicator examples, the upward trend continued & both 61.8% & 100.0% Fibo Extension levels were all hit after which gold price retraced again after getting to the 100.00% Fibo Extension area.
How to Use Fibo Extension in Tutorial
Since we use the Fib Extension MetaTrader 4 indicator tool to estimate take-profit zones, how do we draw MT4 Fibo Extension in a downwards trend?
We draw the Fibonacci Extension MT4 indicator from chart point 1 to chart point 2 to chart point 3 as displayed on the examples shown below. Remember we always draw this Fibo Extension MetaTrader 4 technical indicator tool in direction of the trend. In the Fibonacci Extension example shown below, can you figure what direction we have plotted it? That's right - downward direction.
Try & spot difference between how we have drawn Fib Extension above & how Fibo Extension indicator is plotted below. This time you'd also have used Fib Extension level 100.0%, just where the price reached as pictured on the example shown below. That would have been a nice take-profit level.
Downwards Trend - How to Use Fibo Extension in XAUUSD Guide
How to Use Gold Fibonacci Expansion Levels - XAUUSD Fib Extension Tutorial
From the Fib Extension MetaTrader 4 indicator examples above, after drawing this MT4 Fibo Extension tool there are 2 levels which are used to show the taking profit levels, these 2 Fibo Extension areas are plotted as horizontal lines across the gold price chart marked as 61.8 percentFibo Extension Level and 100% Fibo Extension Level.
