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