How to Draw Fibonacci Projection on Up CFD Trend
Drawing Fib Projection Zones on an Upwards CFDs Trend
We use Fibo Projection levels to estimate where the cfd trend movement will reach. There are 2 oftenly used Fibonacci Projection levels: 61.8%Fibonacci Projection Level and 100% Fibonacci Projection Level, these Fibonacci Projection Levels are used for setting take profit levels.
On the Fibonacci Projection technical indicator example illustrated and shown below you can see that the Fibonacci Projection technical indicator is plotted along the direction of the cfd trend, since the cfd trend is up - the Fibonacci Projection technical indicator is drawn upwards.
These Fib Projection levels are displayed as horizontal lines above Fib Projection technical indicator, showing profit taking areas. In the cfd example illustrated below if you had used 100.00% Fibonacci Projection level you would have made a good profit from this trade setup.
How to Draw CFD Fib Projection on Upward CFD Trend - How to Draw Fibonacci Projection on Up CFD Trend
From the above Fibonacci Projection technical indicator tool example, the upward cfd trend continued & both 61.80% and 100.0% Fibonacci Projection levels were all hit after which the cfds price retraced again after getting to the 100.0% Fibo Projection level.
From the Fibonacci Projection technical indicator tool example above, after plotting this Fibonacci Projection tool there are two levels that are used to show the profit taking areas, these two Fibonacci Projection areas are plotted as horizontal lines across the cfds chart marked as 61.8%Fibo Projection Level and 100% Fibonacci Projection Level.
Explanation of How to Draw Fibonacci Projection Levels on CFDs Charts
We use Fibo Projection levels to estimate where the cfd trend movement will reach. There are Two important Fibo Projection levels: 61.8% and 100% Fib Projection Levels, these are used for profit taking.
To plot Fibonacci Projection zones on the cfds chart we wait until the cfds price retracement is complete & the cfds price starts to move in original direction of the CFD trend. Where the cfds price retracement reaches is used as chart point 3. Fib Projection Indicator is plotted using 3 chart points as illustrated and shown on the cfd example displayed below of how to plot the Fibonacci Projection Technical Indicator Tool.
The Fib Projection examples illustrated & displayed below shows the Three Chart Points where the Fib Projection 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 and Chart point 3 is where the cfd retracement reached as illustrated and shown on the Fib Projection Indicator example illustrated & shown below.
How to Draw Fibonacci Projection CFDs Technical Indicator Tool on Upward CFD Trend
Please note where these Fib Projection areas are plotted - Fib Projection areas are plotted above Fib indicator, these are the chart points where a trader will set the takeprofit orders using these Fib Projection Levels - 61.8% & 100.0% Fibo Projection Levels.
