How to Draw CFDs Fib Expansion

How Do You Use Fibonacci Expansion Levels CFDs Indicator on CFD Chart?

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

To draw CFD Fibonacci Expansion levels on the 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 Expansion Technical Indicator is plotted using 3 chart points as shown on the cfd examples displayed below of how to plot the CFD Fib Expansion Technical Indicator Tool.

The CFD Fibonacci Expansion example displayed below shows the 3 Chart Points where the CFD Fibonacci Expansion 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 Expansion Technical Indicator Tool example shown below.

How to Trade With CFDs Fibonacci Expansion - How to Draw Fibonacci Expansion Levels CFD Indicator on CFD Charts

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

Drawing CFD Fibonacci Expansion Levels Technical Indicator on an Upward CFD Trend

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

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

These CFD Fibo Expansion areas are shown as horizontal lines above the CFD Fibo Expansion technical indicator, showing profit taking areas. In the cfd examples shown below if you had used of 100.0% CFD Fibo Expansion level you would have made a nice profit from the trade set-up.

Drawing CFD Fibonacci Expansion Indicator on an Upwards CFD Trend - CFD Fibo Expansion Tool

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

Drawing CFDs Fibonacci Expansion Areas on a Downward CFDs Trend

Since we use the CFD Fibonacci Expansion indicator tool to estimate take profit levels, how do we draw CFD Fibonacci Expansion in a downward CFD trend?

We draw the CFD Fibo Expansion technical indicator tool from chart point 1 to chart point 2 to chart point 3 as displayed on the cfd examples shown below. Remember we always plot this CFD Fibonacci Expansion tool in direction of the cfds trend. In the CFD Fibonacci Expansion 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 Fibonacci Expansion indicator above and how CFD Fibonacci Expansion indicator is drawn below. This time you would also have used CFD Fibonacci Expansion 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 area.

Drawing CFD Fibonacci Expansion Indicator on a Downwards CFD Trend - CFD Fibo Expansion Tool

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