How to CFD Trade With CFDs Fibonacci Expansion

Fibo expansion is drawn using Three chart points.

To draw CFD Fibonacci Expansion levels 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 retracement reaches is used as chart point 3.

The Fib expansion example illustrated & displayed below shows the 3 Chart Points where the Fib expansion indicator is drawn, marked as Chart point 1, 2 and 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 Expansion Tool example shown below.

CFD Trade With CFDs Fibonacci Expansion?

Please note where these CFD Fib Expansion levels are plotted - CFD Fibo Expansion levels are drawn above the Fibonacci Technical Indicator, these are points where the trader will set the takeprofit orders using these CFD Fibo Expansion Levels - 61.80% & 100% CFD Fibonacci Expansion Areas.

Drawing CFDs Fibonacci Expansion Levels on an Upward CFDs Trend

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

On the Fibonacci expansion example shown below you can see that the Fibonacci expansion technical indicator is plotted along the direction of the cfd trend, since the cfd trend is upward - the Fibonacci expansion is drawn upwards.

These Fib expansion levels are displayed as horizontal lines above the CFD Fibo Expansion technical indicator, showing profit taking areas. In the cfd example shown below if you had used of 100% Fibonacci expansion you would have made nice profit from the trade set-up.

Drawing CFD Fibonacci Expansion Levels on an Upward CFD Trend - CFD Fibonacci Expansion Strategies in CFDs Trading

From the above Fibonacci expansion examples, the upward cfd trend continued & both 61.80% & 100.0% Fibonacci expansion levels were all hit after which cfds price retraced again after hitting the 100.0 % CFD Fibonacci Expansion level.

Drawing CFD Fibonacci Expansion Levels Technical Indicator on a Downward CFD Trend

Since we use this Fib expansion tool to estimate take profit levels, how do we draw it in a downward CFD trend?

We draw the Fibonacci expansion indicator from chart point 1 to 2 to 3 as shown below. Remember we always plot this Fibonacci expansion tool in direction of the cfds trend. In the Fibonacci expansion example shown below, can you figure what direction we have drawn it? That is right - downwards direction.

Try and spot difference between how we have drawn Fibonacci expansion above and how CFD Fibonacci Expansion is drawn below. This time you would also have used Fibonacci expansion level 100%, just where the cfds price reached as illustrated on the cfd example shown below. That would have been a nice take profit area.

Drawing Fibonacci Expansion Levels CFD Indicator on a Downward CFD Trend - CFD Fibonacci Expansion Levels Technical Analysis Strategies in CFDs Trading

From Fib expansion example above, after plotting this Fibonacci expansion tool there are 2 levels that are used to show the profit taking areas, these two Fibonacci expansion levels are drawn as horizontal lines across the cfds price chart.