CFD Trading Fibonacci Extension Indicator Tutorial

We use CFD Fibo Extension Levels to estimate where the cfd trend movement will reach. There are Two important CFD Fibo Extension areas: 61.80% & 100% CFD Fibo Extension Areas, these are used for taking profit.

To draw CFD Fib Extension levels in the MT4 cfds chart we wait until the cfds price retracement is complete & the cfds price starts to move in the original direction of the CFD trend. Where the cfds price retracement reaches is used as chart point 3. CFD Fibo Extension MetaTrader 4 Technical Indicator is plotted using 3 chart points as shown on the cfd examples displayed below of how to plot the CFD Fibo Extension Technical Indicator MetaTrader 4 Tool.

The CFD Fibonacci Extension MetaTrader 4 Indicator example illustrated & displayed below shows the 3 Chart Points where the CFD Fibonacci Extension MetaTrader 4 technical indicator is plotted, marked as Chart point 1, Chart point 2 & Chart point 3.

Chart point 1 is where the cfd trend started, Chart point 2 is where the cfd trend pulled back & retraced & Chart point 3 is where the cfd retracement reached as shown on the CFD Fibonacci Extension MetaTrader 4 Indicator example illustrated & shown below.

Fibonacci Extension CFD Tutorial - CFD Fibo Extension Technical Indicator Tutorial

Fibonacci Extension CFD Tutorial - CFDs Trading Fibonacci Extension Indicator Tutorial - CFD Fibonacci Extension Levels Tutorial

Please note where these CFD Fib Extension areas are plotted - CFD Fibo Extension levels are drawn above the MT4 Fibonacci indicator, these are the chart points where a trader will set the takeprofit orders using these CFD Fibo Extension Levels - 61.80% & 100.00% CFD Fibo Extension Areas.

Upward CFD Trend - Fibonacci Extension CFD Tutorial - CFDs Trading Fibonacci Extension Indicator Tutorial - CFD Fib Extension Levels Guide

We use CFD Fibo Extension Levels to estimate where the cfd trend movement will reach. There are Two important CFD Fibo Extension areas: 61.8%CFD Fibo Extension Level & 100% CFD Fib Extension Level, these CFD Fib Extension Areas are used for taking profit.

On the CFD Fibonacci Extension MetaTrader 4 indicator example illustrated & shown below you can see that the CFD Fibonacci Extension MetaTrader 4 technical indicator is plotted along the direction of the cfd trend, since the cfd trend is upward - MetaTrader 4 CFD Fibo Extension technical indicator is plotted upward.

These CFD Fibo Extension levels are shown as horizontal lines above the CFD Fibonacci Extension MetaTrader 4 cfds technical technical indicator, showing the profit-taking areas. In the cfd examples shown below if you had used of 100.0% CFD Fibo Extension level the you would have made good profit from this trading setup.

Upward CFD Trend - Fibonacci Extension CFD Tutorial - CFD Fibo Extension Technical Indicator Tutorial

CFDs Trading Fibonacci Extension Indicator Explained - CFD Fibonacci Extension Levels Guide

From the above CFD Fibonacci Extension MetaTrader 4 indicator examples, the upwards cfd trend continued & both 61.80% & 100.0% CFD Fibo Extension levels were all hit after which cfds price retraced again after getting to the 100.0% CFD Fibonacci Extension level.

Fibonacci Extension CFD Guide

Since we use the CFD Fibonacci Extension MetaTrader 4 cfd tool to estimate take profit levels, how do we draw MetaTrader 4 CFD Fibonacci Extension in a downward CFD trend?

We draw the CFD Fibonacci Extension MetaTrader 4 cfd tool from chart point 1 to chart point 2 to chart point 3 as shown on the cfd examples shown below. Remember we always plot this CFD Fibonacci Extension MetaTrader 4 cfd tool in direction of the cfds trend. In the CFD Fibonacci Extension example shown below, can you figure what direction we have plotted it? That's right - downwards direction.

Try and spot difference between how we have drawn CFD Fibo Extension technical indicator above & how CFD Fibo Extension technical indicator is plotted below. This time you would also have used CFD Fibonacci Extension level 100.0%, just where the cfds price reached as illustrated on the cfd example shown below. That would have been a good take profit level.

Downward CFD Trend - Fibonacci Extension CFD Tutorial - CFD Fibo Extension Technical Indicator Tutorial

CFDs Trading Fibonacci Extension Indicator Tutorial - CFD Fibonacci Extension Levels Guide

From the CFD Fibonacci Extension MetaTrader 4 indicator example above, after plotting this MT4 CFD Fibo Extension tool there are two levels which are used to show the profit taking areas, these two CFD Fibo Extension areas are plotted as horizontal lines across the cfds price chart marked as 61.8%CFD Fibo Extension Level & 100% CFD Fib Extension Level.