Fibonacci Extension Gold Trading Guide
We use Fibonacci Extension Levels to estimate where the trend movement will reach. There are 2 important Fibonacci Extension levels: 61.80% and 100% Fibonacci Extension Areas, these are used for taking profit.
To draw Fibo Extension levels on the MetaTrader 4 xauusd chart we wait until the xauusd price retracement is complete & the xauusd price starts to move in original direction of the Gold trend. Where the xauusd trading price retracement reaches is used as chart point 3. Fibo Extension MetaTrader 4 Indicator is plotted using three chart points as shown on the xauusd trading examples illustrated and described below of how to plot the Fib Extension Technical Indicator MT4 Tool.
The Fibo Extension MetaTrader 4 Indicator example illustrated and described below shows the Three Chart Points where the Fibonacci Extension MT4 xauusd technical technical indicator is drawn, marked as Chart point 1, Chart point 2 and Chart point 3.
Chart point 1 is where the gold trend started, Chart point 2 is where the gold trend pulled back and retraced & Chart point 3 is where the gold retracement reached as displayed on the Fibo Extension MT4 Indicator Tool examples illustrated and described below.
Fibonacci Extension Gold Trading Lesson - Fibo Extension XAUUSD Indicator Guide - Fibonacci Extension Levels Guide
Fibonacci Extension Gold Trading Lesson - Fibo Extension XAUUSD Indicator Guide - Fibonacci Extension Levels Guide
Please note where these Fibonacci Extension areas are drawn - Fibonacci Extension areas are drawn above MetaTrader 4 Fibo technical indicator, these are chart points where a trader will set take profit orders using these Fibonacci Extension Levels - 61.8% & 100.0% Fibo Extension Areas.
Upward Gold Trend - Fib Extension Gold Trading Lesson - Fibo Extension XAUUSD Indicator Guide - Fibonacci Extension Levels Tutorial
We use Fibonacci Extension Levels to estimate where the trend movement will reach. There are 2 important Fib Extension levels: 61.80% Gold Fibonacci Extension Level and 100% Fibonacci Extension Level, these Fib Extension Areas are used for taking profit.
On the Fibonacci Extension MetaTrader 4 indicator example illustrated and explained below you can see that the Fibo Extension MT4 technical indicator tool is plotted along the direction of the trend, since the trend is upward - the MetaTrader 4 Fibonacci Extension technical indicator is drawn upwards.
These Fibonacci Extension levels are shown as horizontal lines above the Fib Extension MetaTrader 4 xauusd technical technical technical indicator, showing profit taking areas. In the xauusd trading examples illustrated & described below if you had used the 100.00% Fibo Extension level the you would have made good profit from this trade setup.
Upwards Gold Trend - Fib Extension Gold Trading Lesson - Fibo Extension XAUUSD Indicator Guide - Fibonacci Extension Levels Guide
Fib Extension Indicator Course - Fib Extension Levels Tutorial
From the above Fib Extension MT4 indicator example, the upwards trend continued and both 61.80% and 100.00% Fibonacci Extension levels were all hit after which xauusd price retraced again after getting to the 100.00% Fibonacci Extension level.
Fibonacci Extension Tutorial
Since we use the Fibo Extension MT4 indicator tool to estimate take profit levels, how do we draw MetaTrader 4 Fibonacci Extension in a downward Gold trend?
We draw the Fibonacci Extension MT4 indicator tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the xauusd trading examples illustrated and described below. Remember we always draw this Fibonacci Extension MetaTrader 4 technical indicator tool in the direction of the trend. In the Fibonacci Extension examples illustrated and described below, can you figureout what direction we have drawn it? That's right - downward direction.
Try and identify the difference between how we have plotted Fibo Extension indicator above and how Fibo Extension technical indicator is drawn below. This time you would also have used Fibonacci Extension level 100.00%, just where the price reached as illustrated on the xauusd example illustrated & explained below. That would have been a good level for taking profit.
Downwards Gold Trend - Fib Extension Gold Trading Lesson - Fibo Extension XAUUSD Indicator Guide - Fibonacci Extension Levels Guide
Fib Extension Indicator Course - Fib Extension Levels Tutorial
From the Fibo Extension MT4 indicator examples above, after plotting this MT4 Fibo Extension tool there are 2 levels that are used to show the profit taking areas, these 2 Fibo Extension areas are drawn as horizontal lines across the xauusd trading price chart marked as 61.80% Gold Fibo Extension Level and 100% Fibonacci Extension Level.
