Gold Fibonacci Strategy

We use Fibonacci Extension Levels to try to project where trend move will reach. There are Two critical Fibonacci Extension areas: 61.80% and 100 % Fib Extension Areas, these are used for taking profit.

To draw Fibo Extension levels in MT4 chart we wait til the price retracement is complete and the price starts to move in original direction of the trend. Where the price retracement reaches is used as chart point 3. Fibo Extension MT4 Indicator is drawn using 3 chart points as illustrated on the example illustrated & described below of how to draw the Fibonacci Extension Indicator MetaTrader 4 Tool.

The Fibo Extension MT4 Indicator example illustrated & explained below shows the Three Chart Points where the Fibo Extension MT4 technical indicator is plotted, labeled as Chart point 1, Chart point two and Chart point 3.

Point 1 is where the trend started, Point 2 is where the market trend pulled back and retraced and Chart point 3 is where the retracement reached as portrayed on the Fibo Extension MT4 Indicator Tool example shown and described below.

Fibo Extension Strategy Method

Fibo Extension Strategy - Fibonacci Strategy - Fibonacci Extension Strategy Method

Please note where these Fib Extension levels are drawn - Fibo Extension levels are plotted above MT4 Fibo technical indicator, these are chart points where a trader will place takeprofit orders using these Fib Extension Levels - 61.80% and 100.00% Fib Extension Levels.

Upward Trend - Fib Strategy - Fibonacci Extension Strategy

We use Fibonacci Extension Levels to try to project where trend move will reach. There are Two critical Fibo Extension levels: 61.8 % Gold Fibonacci Extension Level and 100 % Fib Extension Level, these Fib Extension Areas are used for taking profit.

On the Fibo Extension MT4 indicator example shown & described below you can see that the Fibo Extension MT4 technical indicator tool is drawn along the direction of the trend, since the trend is up-wards - the MT4 Fibo Extension technical indicator is plotted up-wards.

These Fibonacci Extension zones are shown as horizontal lines above the Fib Extension MetaTrader 4 technical indicator, showing profit taking areas. In the example illustrated & explained below if you had used 100.00% Fibo Extension level the you would have made good profit from this trade setup.

Up-wards Trend - Fibo Extension Strategy Method

Fib Strategy - Fibonacci Extension Strategy

From the above Fib Extension MetaTrader 4 indicator example, the up-wards trend continued & both 61.8 % & 100.0 % Fibo Extension zones were all hit after which xauusd price retraced again after getting to the 100.00% Fibonacci Extension area.

Fibonacci Extension Strategy

Since we use the Fibo Extension MT4 indicator tool to estimate takeprofit areas, how do we draw MT4 Fibo Extension in a downwards trend?

We draw the Fib Extension MetaTrader 4 indicator tool from chart point 1 to chart point 2 to chart point 3 as displayed on the examples illustrated & described below. Remember we always draw this Fibo Extension MetaTrader 4 indicator in the direction of the trend. In the Fib Extension examples displayed & described below, can you determine what direction we have drawn it? That's right - downward direction.

Try and spot the difference between how we have plotted Fibo Extension indicator above and how Fibonacci Extension indicator is plotted below. This time you'd also have used Fibo Extension level 100.00%, just where the price reached as pictured on the examples illustrated & described below. That would have been a nice level for taking profit.

Downwards Trend - Fibo Extension Strategy Method

Fibonacci Strategy - Fib Extension Strategy

From Fib Extension MetaTrader 4 indicator examples above, after drawing this MT4 Fibo Extension tool there are two levels that are used to show the profit taking areas, these 2 Fibo Extension areas are drawn as horizontal lines across the price chart marked as 61.8% Gold Fibonacci Extension Level and 100 % Fib Extension Level.