How to Draw Fibonacci Expansion on Up XAUUSD Trend
Drawing Fib Expansion Levels on an Upward XAUUSD Trend
We use Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 oftenly used Fibonacci Expansion areas: 61.8%Fibonacci Expansion Level and 100% Fibonacci Expansion Level, these Fibonacci Expansion Levels are used for setting take profit areas.
On the Fibonacci Expansion indicator example illustrated & shown below you can see that the Fibonacci Expansion technical indicator is drawn along the direction of the trend, since the trend is up - the Fibonacci Expansion indicator is drawn upwards.
These Fibo Expansion areas are displayed as horizontal lines above the Fibonacci Expansion indicator, showing the profit taking areas. In the xauusd examples illustrated below if you had used of 100.00% Fibonacci Expansion level you would have made a good profit from the trade setup.
How to Draw XAUUSD Fib Expansion on Upward XAUUSD Trend - How to Draw Fibonacci Expansion on Up XAUUSD Trend
From the above Fibonacci Expansion indicator tool example, the upward trend continued and both 61.8% & 100.0% Fibonacci Expansion levels were all hit after which the gold price retraced again after getting to the 100.00% Fibonacci Expansion level.
From the Fibonacci Expansion tool example above, after drawing this Fibonacci Expansion tool there are two levels that are used to show the profit-taking areas, these two Fibo Expansion zones are drawn as horizontal lines across the gold chart marked as 61.8%Fibonacci Expansion Level and 100% Fibo Expansion Level.
Explanation of How to Draw Fib Expansion Levels on XAUUSD Charts
We use Fibo Expansion levels to estimate where the trend movement will reach. There are 2 important Fib Expansion areas: 61.8% & 100% Fibo Expansion Areas, these are used for taking profit.
To draw Fibonacci Expansion levels on the gold chart we wait until the gold price retracement is complete & the price starts to move in original direction of the XAUUSD trend. Where the gold price retracement reaches is used as chart point 3. Fibonacci Expansion Technical Indicator is drawn using 3 chart points as shown on the xauusd examples displayed below of how to draw the Fib Expansion Technical Indicator Tool.
The Fibonacci Expansion example shown below shows the 3 Chart Points where the Fibonacci Expansion indicator is plotted, marked as Chart point 1, Chart point 2 & 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 shown on the Fibonacci Expansion Indicator Tool example shown below.
How to Draw Fibonacci Expansion Gold Indicator Tool on Upwards XAUUSD Trend
Please note where these Fib Expansion zones are drawn - Fibo Expansion zones are plotted above the Fib technical indicator, these are the chart points where a trader will set the take profit orders using these Fib Expansion Levels - 61.80% and 100.00% Fibonacci Expansion Areas.
