Fibonacci Extension CFDs Strategy

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

To draw CFD Fib Extension levels in MetaTrader 4 cfds chart we wait until the cfd price retracement is complete & the price starts to move in original direction of the CFD trend. Where the cfd price retracement reaches is used as chart point 3. CFD Fibo Extension MetaTrader 4 CFD Trading Indicator is drawn using 3 chart points as illustrated & shown on the cfd example explained below of how to draw the CFD Fibonacci Extension Indicator MT4 Tool.

The CFD Fibo Extension MT4 Indicator example explained below shows the 3 Chart Points where the CFD Fibo Extension MT4 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 and Chart point 3 is where the cfd retracement reached as shown on the CFD Fibo Extension MT4 Indicator Tool example explained below.

CFD Fibonacci Extension Strategy - CFDs Fibonacci Strategy - Fibonacci Extension CFD Strategy

CFD Fibonacci Extension Strategy - CFDs Fibonacci Strategy - Fibonacci Extension CFD Strategy

Please note where these CFD Fib Extension levels are plotted - CFD Fibonacci Extension zones are plotted above the MT4 Fibonacci technical indicator, these are the chart points where one will set the take profit orders using these CFD Fibonacci Extension Levels - 61.80% and 100.00% CFD Fibonacci Extension Levels.

Upward CFD Trend - CFD Fibonacci Extension Strategy - CFDs Fibonacci Strategy - Fibonacci Extension CFD Strategy

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

On the CFD Fibo Extension MT4 indicator example explained and illustrated below you can see that the CFD Fibo Extension MT4 technical indicator is drawn along the direction of the trend, since the trend is upward - MetaTrader 4 CFD Fibonacci Extension technical indicator is plotted upward.

These CFD Fibonacci Extension zones are displayed as horizontal lines above the CFD Fibo Extension MT4 cfd trading technical technical indicator, showing profit taking areas. In the cfd example illustrated below if you had used the 100.0% CFD Fibonacci Extension level the you would have made good profit from this trading setup.

CFD Fibonacci Extension Strategy - CFDs Fibonacci Strategy - Fibonacci Extension CFD Strategy

CFD Fibonacci Strategy - Fibonacci Extension CFD Strategy

From the above CFD Fibo Extension MT4 indicator examples, the upwards trend continued & both 61.80% and 100.0% CFD Fibonacci Extension zones were all hit after which cfd price retraced again after getting to the 100.0% CFD Fibonacci Extension level.

Fib Extension CFDs Strategy

Since we use the CFD Fibo Extension MT4 tool to estimate take profit levels, how do we draw MT4 Fibonacci Extension in a downward CFD trend?

We draw the CFD Fibo Extension MT4 indicator from chart point 1 to chart point 2 to chart point 3 as displayed on the cfd example illustrated below. Remember we always plot this CFD Fibonacci Extension MT4 tool in the direction of the trend. In the CFD Fibonacci Extension example explained and illustrated below, can you figure what is direction that we have drawn it? That is right - downward direction.

Try & spot the difference between how we have drawn CFD Fibonacci Extension indicator above & how CFD Fibonacci Extension technical indicator is plotted below. This time you would also have used CFD Fibonacci Extension level 100.00%, just where the price reached as illustrated on the cfd example explained below. That would have been a good take profit level.

CFD Fibonacci Extension Strategy - CFDs Fibonacci Strategy - Fibonacci Extension CFD Strategy

CFD Fibonacci Strategy - Fibonacci Extension CFD Strategy

From the CFD Fibo Extension MT4 indicator example above, after drawing this MetaTrader 4 CFD Fibo Extension tool there are two levels which are used to show the profit-taking areas, these two CFD Fibo Extension levels are plotted as horizontal lines across the cfd price chart marked as 61.8%CFD Fibonacci Extension Level & 100% CFD Fib Extension Level.