Gold Fibonacci Strategy
We use Fibonacci Extension Levels to try to project where the trend move will reach and get to. There are Two critical Fib Extension areas: 61.80% and 100 % Fib Expansion Areas, these are used for booking profit.
To draw Fibo Extension levels in MT4 chart we wait til the price retracement is complete and the price begins to move in original and initial direction of the trend. Where the price retracement reaches is used as chart point 3. Fibo Extension MetaTrader 4 Indicator is drawn using 3 chart points like as illustrated and shown on the example illustration illustrated and shown & explained below of how to draw the Fib Expansion Indicator MetaTrader 4 Tool.
The Fib Extension MetaTrader 4 Indicator example illustration illustrated and shown & explained below shows the 3 Points where the Fib Extension MetaTrader 4 indicator is drawn, 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 & retraced and Chart point 3 is where the market retracement reached as portrayed on the Fib Extension MetaTrader 4 Indicator Tool illustration shown & explained below.
Fibo Extension Method
Fibo Expansion Strategy - Fibonacci Strategy - Fib Extension Method
Please note where these Fib Extension levels are drawn - Fibo Expansion levels are drawn above MetaTrader 4 Fibo technical indicator, these are chart points where a trader will place takeprofit orders using these Fib Extension Levels - 61.80% & 100.00% Fib Expansion Levels.
Upward Trend - Fib Strategy - Fib Extension Strategy
We use Fibonacci Extension Levels to try to project where the trend move will reach and get to. There are Two critical Fibo Extension levels: 61.8 % Gold Fibonacci Expansion Level and 100 % Fib Extension Level, these Fib Expansion Areas are used for booking profit.
On the Fib Extension MetaTrader 4 indicator illustration shown & described below you can see that the Fib Extension MetaTrader 4 tool is drawn along the direction of the trend, since the trend is upwards - the MetaTrader 4 Fibo Extension indicator is plotted upwards.
These Fib Expansion levels are displayed 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.
Upwards Trend - Fibo Extension Method
Fib Strategy - Fib Expansion Strategy
From the above Fib Extension MetaTrader 4 indicator example illustration, the up-wards trend continued & both 61.8 % & 100.0 % Fibo Extension zones were all hit after which xauusd gold price retraced again after getting to the 100.00% Fib Extension area.
Fibonacci Extension Strategy
Since we use the Fib Extension MetaTrader 4 tool to estimate takeprofit areas, how do we draw MT4 Fibo Extension in a downwards trend?
We draw the Fib Extension MetaTrader 4 tool from chart point 1 to chart point 2 to point 3 like displayed and shown on the illustrations illustrated and shown & 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've drawn it? That's right - downward direction.
Try & spot the difference between how we have plotted Fibonacci Expansion indicator above & how Fibonacci Extension indicator is drawn below. This time you'd also have used Fibo Extension level 100.0%, just where the price reached as pictured on the illustrations illustrated and shown & described below. That would have been a nice level for booking profit.
Downwards Trend - Fibo Extension Method
Fibonacci Strategy - Fib Expansion Strategy
From Fibonacci Extension MetaTrader 4 indicator illustrations above, after drawing this MetaTrader 4 Fibo Extension tool there are two levels that are used to show the profit taking areas, these 2 Fibo Expansion levels are drawn as horizontal lines across the price chart marked as 61.8% Gold Fibonacci Extension Level and 100 % Fib Expansion Level.
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