Fibonacci Extension XAUUSD Indicator Tutorial
We use Fibonacci Extension Areas to estimate where the trend movement will reach. There are 2 important Fib Extension areas: 61.8% and 100% Fibonacci Extension Areas, these are used for taking profit.
To draw Fib Extension levels on the MT4 gold chart we wait until the gold price retracement is complete and the gold price starts to move in original direction of the XAUUSD trend. Where the gold price retracement reaches is used as chart point 3. Fibonacci Extension MetaTrader 4 Indicator is drawn using 3 chart points as displayed on the xauusd examples displayed below of how to draw the Fibonacci Extension Indicator MetaTrader 4 Tool.
The Fibonacci Extension MetaTrader 4 Indicator example shown below shows the 3 Chart Points where the Fibonacci Extension MetaTrader 4 gold technical technical indicator is plotted, marked as Chart point 1, Chart point 2 and Chart point 3.
Chart point 1 is where the xauusd trend started, Chart point 2 is where the xauusd trend pulled back and retraced & Chart point 3 is where the xauusd retracement reached as displayed on the Fibonacci Extension MetaTrader 4 Indicator Tool example shown below.
Fibonacci Extension XAUUSD Tutorial - Fibonacci Extension XAUUSD Indicator Guide
Fibonacci Extension XAUUSD Tutorial - Fibonacci Extension Gold Indicator Tutorial - Fibonacci Extension Levels Guide
Please note where these Fib Extension levels are plotted - Fibo Extension zones are drawn above the MT4 Fibonacci technical indicator, these are the chart points where a trader will set the take-profit orders using these Fib Extension Levels - 61.8% & 100.0% Fibo Extension Levels.
Upward XAUUSD Trend - Fib Extension XAUUSD Tutorial - Fib Extension Technical Indicator PDF - Fib Extension Levels Tutorial
We use Fibonacci Extension Areas to estimate where the trend movement will reach. There are 2 important Fibo Extension areas: 61.8%Fibonacci Extension Level and 100% Fib Extension Level, these Fib Extension Areas are used for taking profit.
On the Fibonacci Extension MetaTrader 4 indicator example illustrated & shown below you can see that the Fibonacci Extension MetaTrader 4 technical indicator is drawn along the direction of the trend, since the trend is upward - the MetaTrader 4 Fibonacci Extension technical indicator is plotted upwards.
These Fibo Extension levels are shown as horizontal lines above the Fibonacci Extension MetaTrader 4 gold technical technical technical indicator, showing profit taking areas. In the xauusd examples shown below if you had used of 100.0% Fibo Extension level the you would have made good profit from this setup.
Upwards XAUUSD Trend - Fib Extension XAUUSD Tutorial - Fibonacci Extension XAUUSD Indicator Guide
Fibonacci Extension Technical Indicator Guide - Fibonacci Extension Levels Guide
From the above Fibonacci Extension MetaTrader 4 indicator examples, the upwards trend continued & both 61.8% & 100.0% Fibo Extension levels were all hit after which gold price retraced again after getting to the 100.00% Fibonacci Extension level.
Fibonacci Extension XAUUSD Tutorial
Since we use the Fibonacci Extension MetaTrader 4 indicator tool to estimate take profit levels, how do we draw MetaTrader 4 Fibonacci Extension in a downward XAUUSD trend?
We draw the Fibonacci Extension MetaTrader 4 indicator from chart point 1 to chart point 2 to chart point 3 as displayed on the xauusd examples shown below. Remember we always plot this Fibo Extension MetaTrader 4 technical indicator tool in direction of the trend. In the Fibonacci Extension example shown below, can you figure what direction we have plotted it? That's right - downwards direction.
Try & spot difference between how we have drawn Fibo Extension indicator above & how Fibo Extension technical indicator is plotted below. This time you would also have used Fibo Extension level 100.0%, just where the price reached as shown on the xauusd example shown below. That would have been a good take profit level.
Downwards XAUUSD Trend - Fib Extension XAUUSD Tutorial - Fibonacci Extension XAUUSD Indicator Guide
Fibonacci Extension Technical Indicator Guide - Fibonacci Extension Levels Guide
From the Fibonacci Extension MetaTrader 4 indicator examples above, after drawing this MT4 Fibonacci Extension tool there are 2 levels which are used to show the profit-taking areas, these 2 Fibonacci Extension areas are plotted as horizontal lines across the gold trading price chart marked as 61.8%Fibonacci Extension Level and 100% Fib Extension Level.
