How Do You Calculate Fibonacci Expansion Levels on XAUUSD Charts?

To Calculate Fib Expansion levels on gold charts we use the Fibonacci Expansion Indicator

What are the Fibo Expansion Levels?

• 61.8% Fibo Expansion Level
• 100% Fib Expansion Level

We use Fibo expansion areas to estimate where the price movement will reach. There are 2 important fibonacci expansion levels: 61.8% and 100% Fibonacci Expansion levels, these level are used for taking profit.

To draw Fibo expansion we use Three chart points.

To draw Fibonacci expansion levels we wait until the gold price retracement is complete & the price starts to move in original direction of the XAUUSD trend. Where the retracement reaches is used as point 3.

The example shown below shows the 3 Chart Points where the Fibonacci expansion indicator is drawn, marked as chart point 1, 2 and 3. Chart point 1 is where the price trend started, Chart point 2 is where the price trend retraced and chart point 3 is where the price retracement reached as shown on the gold trading example shown below.

How Do You Calculate Fibonacci Expansion Levels on XAUUSD Charts?

The two Fibo expansion levels 61.8% & 100% Fibonacci Expansion levels were then drawn above the Fibonacci Expansion Indicator as shown on the xauusd example above.