How to Draw XAUUSD Fib Retracement on a Downward XAUUSD Trend
How Do You Use Fibonacci Retracement Technical Indicator on Downward XAUUSD Trend?
Traders use XAUUSD Fib retracement tool to determine where to place a sell xauusd trade in a gold trading downwards trading trend.
How to Draw Fibonacci Retracement on a Downward XAUUSD Trend
To Draw the XAUUSD Fib retracement indicator tool the first thing to know is that this Fibonacci Retracement indicator tool is always drawn in direction of the trend.
If the xauusd trend is downward - Fibonacci Retracement technical indicator tool is drawn downwards.
How to Draw Fibonacci Retracement in a Downward Gold Trend
In the xauusd examples displayed below of how to draw the XAUUSD Fib Retracement tool, the xauusd market xauusd trend is moving down between chart point 1 and chart point 2, and then after chart point 2 the gold price then retraces up to 38.2% XAUUSD Fib retracement level then it continues moving downwards in the original downward trend. Note that this XAUUSD Fib retracement indicator is drawn from chart point 1 to chart point 2 in direction of the XAUUSD Trend (Downwards Direction).
How to Draw XAUUSD Fib Retracement on a Downward XAUUSD Trend
Technical Analysis of How to Draw Fibonacci Retracement in a Down Gold Trend
The above XAUUSD Fib Retracement technical analysis example xauusd setup is a XAUUSD Fib Retracement setup where the price retraces immediately after getting to the 38.2% Fibonacci Retracement Level.
In this XAUUSD Fib Retracement technical analysis example the retracement of the gold price reached 38.2% XAUUSD Fib retracement level and did not get to 50.0% XAUUSD Fib retracement level. It is always good for gold traders to use the 38.2% XAUUSD Fib retracement level because most times the gold price retracement does not always get to 50.0% XAUUSD Fib retracement level.
This 38.2% XAUUSD Fib Retracement level provided a lot of resistance for the gold price retracement, this was the best place for a trader to set a sell limit order as a xauusd market xauusd trend quickly moved down after retracing to this gold price retracement level.
Guide of How to Draw Fibonacci Gold Indicator Tool on XAUUSD Charts
Guide of How to Draw Fibonacci Gold Indicator Tool on XAUUSD Charts
