Fibonacci Extension Gold MT4 Indicator
How to Use Fibonacci Extension in XAUUSD Trading
We use Fibo Extension Levels to estimate where the trend movement will reach. There are Two important Fibonacci Extension levels: 61.80% & 100% Fibo Extension Areas, these are used for taking profit.
To draw Fibo Extension levels in MT4 xauusd 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. Fibonacci Extension MT4 Indicator is drawn using 3 chart points as illustrated on the xauusd example illustrated & described below of how to draw the Fib Extension Technical Indicator MT4 Tool.
The Fibonacci Extension MT4 Indicator example illustrated & explained below shows the Three Chart Points where the Fibonacci Extension MT4 technical 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 displayed on the Fibo Extension MT4 Indicator Tool example illustrated and explained below.
Fibonacci Extension Gold Trading MetaTrader 4 Technical Indicator
Fibonacci Extension Gold MT4 Indicator - Fibo Extension Calculation
Please note where these Fibo Extension levels are drawn - Fibo Extension levels are plotted above MetaTrader 4 Fibo technical indicator, these are chart points where a trader will place take profit orders using these Fibo Extension Levels - 61.80% and 100.00% Fibo Extension Levels.
Gold Fibo Extension MT4 Indicator
We use Fibo Extension Levels to estimate where the trend movement will reach. There are Two important Fib Extension levels: 61.8% Gold Trading Fibo Extension Level & 100% Fibo Extension Level, these Fib Extension Areas are used for taking profit.
On the Fibonacci Extension MT4 indicator example illustrated and explained below you can see that the Fibo Extension MT4 technical indicator tool is drawn along the direction of the trend, since the trend is upwards - the MT4 Fibonacci Extension technical indicator is drawn upwards.
These Fibonacci Extension zones are shown as horizontal lines above the Fib Extension MetaTrader 4 xauusd technical technical indicator, showing profit taking areas. In the xauusd example illustrated & explained below if you had used 100.00% Fibonacci Extension level the you would have made good profit from this trade setup.
Upwards Gold Trend - Fib Extension Gold Trading MetaTrader 4 Technical Indicator
Fib Extension Calculator - How to Use Fibonacci Extension in Gold Trading
From the above Fib Extension MT4 indicator example, the upwards 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 level.
XAUUSD Trading Fib Extension MetaTrader 4 Indicator
Since we use the Fibo Extension MT4 indicator tool to estimate take profit levels, how do we draw MT4 Fibonacci Extension in a downward Gold trend?
We draw the Fibonacci Extension MT4 indicator tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the xauusd trading examples illustrated & described below. Remember we always draw this Fibo Extension MetaTrader 4 indicator in the direction of the trend. In the Fibonacci Extension examples illustrated and described below, can you determine what direction we have drawn it? That's right - downwards direction.
Try & spot the difference between how we have plotted Fibo Extension indicator above and how Fibonacci Extension technical indicator is drawn below. This time you would also have used Fibo Extension level 100.00%, just where the price reached as shown on the xauusd examples illustrated and described below. That would have been a good level for taking profit.
Downwards Gold Trend - Fib Extension Gold Trading MetaTrader 4 Technical Indicator
Fibonacci Extension Calculator - How to Use Fib Extension in XAUUSD Trading
From Fibonacci Extension MT4 indicator examples above, after drawing this MT4 Fibonacci Extension tool there are 2 levels that are used to show the profit-taking areas, these 2 Fibo Extension areas are drawn as horizontal lines across the xauusd price chart marked as 61.8% Gold Trading Fibo Extension Level & 100% Fibo Extension Level.
