CFD Fibonacci Extension Indicator Levels Defined

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

What are the CFD Fibonacci Extension Levels?

• 61.8% CFD Fibonacci Extension Level
• 100% CFD Fibonacci Extension Level

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

To draw Fibonacci expansion we use Three chart points.

To draw Fibonacci extension levels we wait until the cfd price retracement is complete and 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 extension 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 shown on the cfd examples explained & illustrated below.

CFD Fibonacci Extension Indicator Explained

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