CFD Fibonacci Expansion Indicator Levels Defined

To Calculate CFD Fibonacci Expansion levels on cfds charts we use the cfd Fibonacci Expansion Indicator

What are the CFD Fibonacci Expansion Levels?

• 61.8% CFD Fibonacci Expansion Level
• 100% CFD Fibonacci Expansion Level

We use Fibonacci expansion areas to estimate where the price movement will reach. There are 2 important fibonacci expansion levels: 61.8% and 100% CFD Fibonacci Expansion levels, these level are used for taking profit.

To draw Fibonacci expansion we use 3 chart points.

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

The example explained and illustrated below shows the 3 Chart Points where the Fibonacci expansion indicator is drawn, marked as chart point 1, 2 and 3. Chart point 1 is where the price cfd trend started, Chart point 2 is where the price cfd trend retraced and chart point 3 is where the price retracement reached as illustrated on the cfd examples explained and illustrated below.

CFD Fibonacci Expansion Indicator Explained

The two Fibonacci expansion levels 61.8% and 100% CFD Fibonacci Expansion levels were then drawn above the CFD Fibonacci Expansion Indicator as shown on the cfd example above.