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 indicator tool is drawn along the direction of the trend, since the trend is up - the Fibonacci Expansion indicator is drawn upwards.
These Fibonacci Expansion levels are displayed as horizontal lines above the Fibonacci Expansion indicator, showing profit taking areas. In the xauusd trading example illustrated and explained below if you had used of 100.0% Fibonacci Expansion level you would have made nice profit from the 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 and both 61.8% and 100.0% Fibonacci Expansion levels were all hit after which the xauusd price retraced again after getting to the 100.0% Fibonacci Expansion level.
From the Fibonacci Expansion indicator tool example above, after drawing this Fibonacci Expansion tool there are two levels that are used to show the profit taking areas, these two Fibonacci Expansion levels are drawn as horizontal lines across the gold chart marked as 61.8% XAUUSD Trading Fib Expansion Level and 100% Fibonacci 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 2 important Fibonacci Expansion levels; 61.8% and 100% Fibonacci Expansion Levels, these are used for taking profit.
To draw Fibonacci Expansion levels on the gold chart we wait until the xauusd price retracement is complete and the price starts to move in the original direction of the Gold trend. Where the xauusd price retracement reaches is used as chart point 3. Fibonacci Expansion Indicator is drawn using three chart points as shown on the xauusd trading example illustrated and explained below of how to draw the Fibonacci Expansion Indicator Tool.
The Fibonacci Expansion example illustrated and explained below shows the 3 Chart Points where the Fibonacci Expansion 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 Expansion Indicator Tool example illustrated and explained below.
How to Draw Fibonacci Expansion Technical Indicator on Upwards Gold Trend
Please note where these Fibonacci Expansion levels are drawn - Fibonacci Expansion levels are drawn above the Fibonacci indicator, these are the chart points where a trader will set the take profit orders using these Fibonacci Expansion Levels - 61.8% and 100.0% Fibonacci Expansion Levels.
