How to Draw Gold Trading Fib Expansion on Upward Gold Trend
Drawing Fibonacci Expansion Levels on an Upward Gold Trend
We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 commonly used Fibonacci Expansion levels: 61.8% XAUUSD Trading Fib Expansion Level and 100% Fibonacci Expansion Level, these Fibonacci Expansion Levels are used for setting take profit levels.
On the Fibonacci Expansion indicator example illustrated and explained below you can see that the Fibonacci Expansion technical indicator tool is drawn along the direction of the trend, since the trend is up - the Fibonacci Expansion indicator is drawn upward.
These Fibo Expansion levels are displayed as horizontal lines above the Fib Expansion indicator, showing the profit-taking areas. In the xauusd trading examples described below if you had used the 100.00% Fibo Expansion level you would have made a good profit from this trade setup.
How to Draw Gold Trading Fib Expansion on Upward Gold Trend
From the above Fibonacci Expansion indicator tool example, the upward trend continued & both 61.80% and 100.00% Fibonacci Expansion levels were all hit after which the xauusd price retraced again after getting to the 100.00% Fibonacci Expansion level.
From the Fibo Expansion indicator tool examples above, after drawing this Fibonacci Expansion tool there are 2 levels that are used to show the profit-taking areas, these two Fibonacci Expansion zones are drawn as horizontal lines across the gold chart marked as 61.8% XAUUSD Trading Fib Expansion Level & 100% Fibo Expansion Level.
Explanation of How to Draw Fibonacci Expansion Levels on Gold Charts
We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are Two important Fibonacci Expansion levels: 61.80% & 100% Fibonacci Expansion Levels, these are used for taking profit.
To draw Fibo Expansion levels on the gold chart we wait until the xauusd price retracement is complete & the price starts to move in original direction of the Gold trend. Where the xauusd price retracement reaches is used as chart point 3. Fibo Expansion Technical Indicator is drawn using three chart points as displayed on the xauusd examples illustrated & explained below of how to draw the Fibonacci Expansion Technical Indicator Tool.
The Fib Expansion example illustrated & shown below shows the Three Chart Points where the Fibonacci Expansion indicator is drawn, marked as Chart point 1, Chart point 2 & Chart point 3.
Chart point 1 is where the gold trend started, Chart point 2 is where the gold trend pulled back & retraced and Chart point 3 is where the gold retracement reached as illustrated on the Fibonacci Expansion Indicator Tool examples illustrated and described below.
How to Draw Fib Expansion Indicator on Upwards Gold Trend
Please note where these Fibonacci Expansion zones are drawn - Fibo Expansion zones are plotted above the Fibonacci technical indicator, these are chart points where a trader will place take profit orders using these Fibo Expansion Levels - 61.80% & 100.00% Fibo Expansion Levels.
