Fibonacci Extension CFD Strategy

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

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

The CFD Fibo Extension MT4 Indicator examples illustrated & displayed below shows the 3 Chart Points where the CFD Fibo Extension MT4 technical indicator is drawn, marked as Chart point 1, Chart point 2 and Chart point 3.

Chart point 1 is where the cfd trend started, Chart point 2 is where the cfd trend pulled back & retraced and Chart point 3 is where the cfd retracement reached as shown on the CFD Fibo Extension MT4 Indicator example illustrated & shown below.

CFD Fibonacci Extension Strategy

CFD Fibonacci Extension Levels Tutorial - CFD Fib Levels Technical Analysis - Fibonacci Extension CFD Strategy

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

Upward CFD Trend - CFD Fibonacci Extension Levels Trading Strategy - CFDs Fibonacci Levels Explained - Fibonacci Extension CFD Strategy

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

On the CFD Fibo Extension MT4 indicator example illustrated and shown below you can see that the CFD Fibo Extension MT4 technical indicator is plotted along the direction of the cfd trend, since the cfd trend is upward - MetaTrader 4 CFD Fibonacci Extension technical indicator is drawn upward.

These CFD Fibonacci Extension levels are shown as horizontal lines above the CFD Fibo Extension MT4 cfds trading technical indicator, showing profit taking areas. In the cfd example illustrated below if you had used of 100.00% CFD Fibonacci Extension level the you would have made good profit from this trading setup.

Upward CFD Trend - CFD Fibonacci Extension Strategy

CFDs Fib Technical Indicator Strategies - Fib Extension CFDs Strategy

From the above CFD Fibo Extension MT4 indicator examples, the upwards cfd trend continued & both 61.80% and 100.0% CFD Fibonacci Extension levels were all hit after which cfds price retraced again after getting to the 100.0% CFD Fibonacci Extension level.

CFDs Fibonacci Strategy

Since we use the CFD Fibo Extension MT4 cfd tool to estimate take profit levels, how do we draw MT4 CFD Fibonacci Extension in a downward CFD trend?

We draw the CFD Fibo Extension MT4 indicator tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the cfd examples illustrated below. Remember we always draw this CFD Fibo Extension MT4 cfd tool in direction of the cfds trend. In the CFD Fibonacci Extension example shown below, can you figure what direction we have drawn it? That's right - downward direction.

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

Downward CFD Trend - CFD Fibonacci Extension Strategy

CFDs Fib Technical Indicator Strategies - Fib Extension CFDs Strategy

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