How Do You Draw CFD Fibonacci Expansion Levels?

How Do You Trade and Draw CFD Fibonacci Expansion Levels?

Traders use Fibonacci expansion levels to estimate where the trend movement will reach. There are two commonly used Fibonacci expansion levels - 61.8% CFD Fibonacci Expansion Level and 100% CFD Fibonacci Expansion Levels, these fibonacci expansion levels are used for setting cfd trading take profit areas.

To draw CFD Fibonacci 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 trend. Where the cfd price retracement reaches is used as chart point 3. Fibonacci Expansion CFD Indicator is drawn using three chart points as illustrated on the Fibonacci expansion cfd example explained below of how to draw the Fibonacci Expansion CFDs Indicator Tool.

The Fibonacci expansion example explained and illustrated below shows the 3 CFD Trading Chart Points where the Fibo expansion indicator is drawn, marked as CFD Trading Chart point 1, CFD Trading Chart point 2 & CFD Trading Chart point 3.

CFD Trading Chart point 1 is where the cfd trend started, CFD Chart point 2 is where the cfd trend pulled back & retraced & CFD Trading Chart point 3 is where the cfd retracement reached as shown on the Fibonacci Expansion CFDs Indicator Tool example explained below.

How Do You Draw CFD Fibonacci Expansion Levels? - How Do You Draw CFD Fibonacci Expansion Levels?

Please note where these CFD Fib Expansion zones are drawn - CFD Fibonacci 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 Fibonacci Expansion Levels - 61.80% and 100.00% CFD Fibo Expansion Areas.

Drawing CFDs Fib Expansion Levels on an Upward CFDs Trading Trend

We use Fibonacci expansion areas to estimate where the market trend movement will get to. There are two commonly used Fibonacci expansion levels: 61.8%CFD Fibonacci Expansion Level & 100% CFD Fibonacci Expansion Level, these CFD Fibonacci Expansion Levels are used for taking profit.

On the Fibonacci expansion indicator example explained and illustrated below you can see that the Fibonacci expansion technical indicator is drawn along the direction of the trend, since the trend is upwards - the Fibonacci expansion levels indicator is drawn upwards.

These Fibo expansion levels are displayed as horizontal lines above the CFD Fibonacci Expansion indicator, showing cfd profit taking areas. In the cfd example illustrated below if you had used the 100.0% Fibonacci expansion level you would have made nice profit from the trade setup.

Drawing Fibonacci Expansion Levels CFDs Indicator on an Upward CFD Trading Trend

From the above Fibo expansion indicator example, the upwards trend continued and both 61.80% and 100.0% Fibo expansion levels were all hit after which cfd price retraced again after getting to the 100.0% CFD Fibonacci Expansion level.

Drawing Fibonacci Expansion Levels on a Downwards CFD Trading Trend

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

We draw the Fibonacci expansion indicator tool from chart point 1 to chart point 2 to chart point 3 as illustrated on the Fibonacci expansion cfd example illustrated below. Remember we always plot this Fibonacci expansion tool in the direction of the market trend. In the Fibonacci expansion 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 Fibonacci expansion levels indicator above and how CFD Fibonacci Expansion levels indicator is drawn below. This time you would also have used Fibonacci expansion level 100.0%, just where the price reached as shown on the Fibonacci expansion levels cfd example explained and illustrated below. This would have been a good cfd take profit area.

Drawing Fibonacci Expansion Levels CFDs Indicator on a Downward CFD Trading Trend

From the Fibonacci expansion levels indicator example above, after drawing this Fibonacci expansion levels cfd tool there are two levels that are used to show the cfd trading profit taking areas - these two Fibonacci expansion levels are drawn as horizontal lines across the cfd price chart marked as 61.80% CFD Fibonacci Expansion Level & 100% CFD Fibonacci Expansion Level.

How Do You Draw CFD Fibonacci Expansion Levels?