CFD Fibonacci Extension Indicator Example

To Calculate CFD Fibonacci Extension levels on cfds charts we use the cfd Fibonacci Extension Indicator

What are the CFD Fibonacci Extension Levels?

• 61.8%CFD Fibonacci Extension Level
• 100% CFD Fibonacci Extension Level

We use Fibo expansion areas to estimate where the cfds price movement will reach. There are 2 important fibonacci expansion areas: 61.8% and 100% CFD Fibonacci Extension levels, these level are used for taking profit.

To draw Fib expansion we use 3 chart points.

To draw Fibonacci extension levels we wait until the cfds price retracement is complete & the cfd price starts to move in the original direction of the CFD trend. Where the retracement reaches is used as point 3.

The example displayed 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 cfds price cfd trend started, Chart point 2 is where the cfds price cfd trend retraced and chart point 3 is where the cfds price retracement reached as illustrated on the cfd example shown below.

How Do You Calculate CFD Fibonacci Extension Areas Technical Indicator on CFD Charts?

The two Fib extension levels 61.8% and 100% CFD Fibonacci Extension levels were then drawn above the CFD Fibonacci Extension Indicator as shown on the cfd example above.