How to Draw CFD Fib Expansion on Downward CFD Trend

Drawing CFDs Fibo Expansion Levels Technical Indicator on 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.

As a trader you would also have used CFD Fibonacci Expansion level 100.0%, just where the cfds price reached as illustrated on the CFD Fibonacci Expansion example shown below. That would have been a good take profit area.

How to Draw CFD Fib Expansion on Downward CFD Trend - How to Draw CFD Fibonacci Expansion on Down CFD Trend

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

Explanation of How to Draw CFD Fibonacci Expansion Levels Technical Indicator on CFDs Charts

We use CFD Fibonacci Expansion levels to estimate where the cfd trend movement will reach. There are 2 oftenly used CFD Fibonacci Expansion areas: 61.8% CFD Fibonacci Expansion Level and 100% CFD Fibonacci Expansion Areas, these are used for setting taking profit areas.

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 Fibonacci Expansion Indicator tool is drawn using three 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 Draw CFDs Trading Fib Expansion Technical Indicator on Downwards CFD Trend

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 Fibonacci Expansion Levels - 61.8% CFD Fibonacci Expansion Level and 100.0% CFD Fibo Expansion Level.