How Do You Analyze the Difference between CFDs Fibonacci Retracement Levels and Fibonacci Extension Levels in CFD?
CFD Trade the Difference between CFDs Fibonacci Retracement Levels and Fibonacci Extension Levels in CFD
Fibonacci Retracement Levels in CFD
Fibonacci retracement is drawn between 2 chart points but Fib extension is drawn using Three chart points.
CFDs Fibonacci Retracement Level cfd example explained and illustrated below where the cfd trend is moving down between CFDs Chart point 1 and CFDs Chart point 2, then after CFDs Chart point 2 the cfd price retraces then it continues heading upward in the original upward trend. Note that this CFDs Fibonacci Retracement Levels indicator is drawn from CFDs Chart point 1 to CFDs Chart point 2 in the direction of the trend.
CFDs Fib Retracement Levels - How Do You Draw CFDs Fibonacci Retracement Zones
Fibonacci Extension Levels in CFD
Fibonacci retracement is drawn between 2 chart points but Fib extension is drawn using Three chart points.
To draw these CFD Fibonacci Extension zones 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 for fibonacci extension in cfd.
The CFD Fibonacci Extension cfd example explained and illustrated below shows the 3 cfd chart Points where the CFD Fibonacci Extension indicator is drawn, marked as chart points 1, 2 and 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 Fibonacci Extension cfd examples explained & illustrated below.
CFD Fibonacci Extension Levels - How Do You Draw CFD Fibonacci Extension Zones
Please note where these CFD Fib Extension levels are drawn - CFD Fibonacci Extension zones are plotted above the CFD Fibonacci Extension indicator, these are the points where a trader will set the cfd trading take profit orders.
Read the Difference between CFDs Fibonacci Retracement Levels and Fibonacci Extension Levels in CFD
