Fibonacci Extension Indicator Example

To Calculate Fibo Extension levels on gold charts we use the Fib Extension Indicator

What are the Fibo Extension Levels?

• 61.8% Fibo Extension Level
• 100% Fib Extension 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 Extension levels, these level are used for taking profit.

To draw Fibo expansion we use 3 chart points.

To draw Fibonacci extension levels 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 retracement reaches is used as point 3.

The example shown below shows the 3 Chart Points where the Fibonacci extension 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 displayed & illustrated & shown below.

How Do You Calculate Fibonacci Extension Levels on XAUUSD Charts?

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