How Do You Draw Fib Expansion Indicator on CFD Charts?

How Do You Trade and Draw Fib Expansion Indicator on CFD Charts?

How Do You Draw CFD Fib Expansion Levels on CFD Charts?

Traders use CFD Fib Expansion levels indicator to estimate where the trend movement will reach. There are Two important CFD Fib Expansion levels: 61.8% and 100% CFD Fib Expansion Levels, these are used for taking profit.

To draw CFD Fib Expansion levels on the 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. Fib Expansion CFD Indicator is drawn using three chart points as shown on the cfd example explained below of how to draw the CFD Fib Expansion Technical Indicator Tool.

The CFD Fib Expansion cfd example explained and illustrated below shows the 3 CFDs Chart Points where the cfd trading Fib Expansion technical indicator is drawn, marked as CFDs Chart point 1, CFDs Chart point 2 & CFDs Chart point 3.

CFDs Chart point 1 is where the cfd trend started, CFDs Chart point 2 is where the cfd trend pulled back & retraced and CFDs Chart point 3 is where the price retracement reached as shown on the CFD Fib Expansion Indicator Tool cfd examples explained & illustrated below.

CFD Trade With CFD Fib Expansion? - How Do I Draw CFD Fib Expansion Levels on CFD Charts

Please note where these CFD Fib Expansion zones are drawn - CFD Fib Expansion zones are plotted above the Fibonacci cfd technical indicator, these are the chart points where one will set the cfd take profit orders using these CFD Fib Expansion Levels - 61.8% and 100.0% CFD Fib Expansion Levels.

Drawing CFD Fib Expansion Levels on an Upward CFD Trading Trend

We use CFD Fib Expansion levels to estimate where the trend movement will reach. There are Two important CFD Fib Expansion levels: 61.8%CFD Fib Expansion Level and 100% CFD Fib Expansion Level, these CFD Fib Expansion Levels are used as cfd taking profit levels.

On the CFD Fib Expansion indicator cfd example explained and illustrated below you can see that the CFD Fib Expansion technical indicator is drawn along the direction of the trend, since the trend is upwards - the CFD Fib Expansion indicator is drawn upwards.

These CFD Fib Expansion levels are displayed as horizontal lines above the cfd trading Fib Expansion technical technical indicator, showing profit taking areas. In the cfd example explained below if you had used the 100.00% CFD Fib Expansion level you would have made nice profit from the cfd trade setup.

Drawing CFD Fib Expansion Indicator on an Upward CFD Trend - CFD Fib Expansion Trading Tool

From the above CFD Fib Expansion indicator cfd example, the upward trend continued and both 61.8% and 100.00% CFD Fib Expansion levels were all hit after which cfd price retraced again after getting to the 100.00% CFD Fib Expansion level.

Drawing CFD Fib Expansion Levels on a Downward CFD Trading Trend

Since we use the CFD Fib Expansion indicator tool to estimate cfd trading take profit levels, how do we draw CFD Fib Expansion in a downward CFD trend?

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

Try and spot the difference between how we have plotted CFD Fib Expansion indicator above and how CFD Fib Expansion indicator is drawn below. This time you would also have used CFD Fib Expansion level 100.0%, just where the price reached as shown on the cfd example explained and illustrated below. That would have been a good cfd trading take profit area.

Drawing CFD Fib Expansion Indicator on a Downward CFD Trend - CFD Fib Expansion Trading Tool

From the CFD Fib Expansion indicator cfd example above, after drawing this CFD Fib Expansion cfd tool there are 2 levels that are used to show the cfd trading profit taking levels, these two CFD Fib Expansion zones are drawn as horizontal lines across the cfds chart marked as 61.8%CFD Fib Expansion Level and 100% CFD Fib Expansion Level.

How Do I Trade & Draw Fib Expansion Indicator on CFD Charts