How Do I Calculate Fibonacci Extension Levels?
To Calculate Fibo Extension levels on gold charts we use the Fib Extension Indicator
What are the Fibo Extension Levels?
- 61.8% Fibo Extension Level
- 100% Fibonacci Extension Level
We use Fibo expansion levels to estimate where the price movement will reach. There are 2 important fibonacci expansion areas: 61.8% and 100% Fibonacci Extension levels, these level are used for taking profit.
To draw Fib expansion we use Three chart points.
To draw Fibonacci extension levels we wait until the xauusd price retracement is complete and xauusd price starts to move in original direction of the Gold trend. Where the retracement reaches is used as point 3.
The example illustrated and explained below shows the 3 Chart Points where the Fibonacci extension indicator is drawn, marked as chart point 1, 2 and 3. Chart point 1 is where the price gold trend started, Chart point 2 is where the price gold trend retraced and chart point 3 is where the price retracement reached as shown on the xauusd example illustrated & explained below.
How Do You Calculate Fibonacci Extension Levels on Gold Charts?
The two Fib extension levels 61.8% and 100% Fibonacci Extension levels were then drawn above the Fibonacci Extension Indicator as shown on the xauusd trading example above.
