How to Draw CFD Fibonacci Extension on Up CFD Trend

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

We use CFD Fibo Extension Levels to estimate where the cfd trend movement will reach. There are 2 oftenly used CFD Fibo Extension areas: 61.8%CFD Fibo Extension Level & 100% CFD Fib Extension Level, these CFD Fibonacci Extension Levels are used for setting take profit areas.

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

These CFD Fibo Extension levels are shown as horizontal lines above the CFD Fibo Extension technical indicator, showing the profit taking areas. In the cfd examples shown below if you had used of 100.0% CFD Fibo Extension level you would have made a nice profit from using this trading setup.

How to Draw CFD Fib Extension on Upward CFD Trend - How to Draw CFD Fibonacci Extension on Up CFD Trend

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

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

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

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

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

The CFD Fibo Extension example displayed below shows the 3 Chart Points where the CFD Fibonacci Extension technical indicator is drawn, 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 Extension Technical Indicator Tool example shown below.

How to Draw CFDs Trading Fib Extension Technical Indicator on Upwards CFD Trend

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