What is the Difference between CFDs Fibo Retracement & CFDs Fibonacci Expansion?

CFDs Fib Retracement Levels

Fib retracement is drawn between 2 chart points but Fibo expansion is drawn using Three chart points.

CFDs Fibonacci Retracement example shown below where the cfd trend is heading downwards between Chart point 1 and Chart point 2, then after Chart point 2 the cfds price retraces then it continues moving up in the original upward cfds trend. Note that this CFDs Fibonacci Retracement indicator is drawn from Chart point 1 to Chart point 2 in direction of the cfds trend.

CFDs Fibonacci Retracement Levels - How to Draw CFDs Fibonacci Retracement Levels

CFDs Fib Expansion Levels

Fib retracement is drawn between 2 chart points but Fibo expansion is drawn using Three chart points.

To draw these CFD Fibonacci Expansion levels we wait until the cfds price retracement is complete & the cfds price starts to move in original direction of the CFD trend. Where the retracement reaches is used as chart point 3 for Fibonacci expansion.

The CFD Fibonacci Expansion example displayed below shows the 3 chart Points where the CFD Fibonacci 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 and Chart point 3 is where the retracement reached as illustrated and shown on the CFD Fibonacci Expansion example shown below.

CFD Fibonacci Expansion Levels - How to Draw CFD Fibonacci Expansion Areas

Please note where these CFD Fib Expansion zones are plotted - CFD Fibonacci Expansion zones are drawn above the CFD Fibonacci Expansion indicator, these are the points where a trader will set the take-profit orders.