How to Draw Fibonacci Expansion Technical Indicator Tool on CFD Charts

How Do You Use Fibonacci Expansion Levels on CFD Chart?

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

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

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

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

How to Trade With CFDs Fibonacci Expansion - How to Draw Fibonacci Expansion Levels on CFD Charts

Please note where these CFD Fib Expansion zones are drawn - CFD Fibonacci Expansion zones are plotted above the Fib technical indicator, these are the chart points where one will set the take profit orders using these CFD Fibonacci Expansion Levels - 61.80% and 100.00% CFD Fibo Expansion Levels.

Drawing CFDs Fib Expansion Levels on an Upward CFDs Trend

We use CFD Fibonacci Expansion levels to estimate where the trend movement will reach. There are Two important CFD 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 CFD Fibonacci Expansion indicator example explained and illustrated below you can see that the CFD Fibonacci Expansion technical indicator is drawn along the direction of the trend, since the trend is upwards - the CFD Fibonacci Expansion indicator is drawn upwards.

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

Drawing CFD Fibo Expansion Indicator on an Upward CFD Trend - CFD Fibonacci Expansion Trading Tool

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

Drawing CFDs Fib Expansion Levels on a Downward CFDs Trend

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

We draw the CFD Fibonacci Expansion indicator from chart point 1 to chart point 2 to chart point 3 as displayed on the cfd example explained below. Remember we always draw this CFD Fibonacci Expansion tool in direction of the trend. In the CFD Fibonacci Expansion 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 Fibonacci Expansion indicator above and how CFD Fibonacci Expansion indicator is drawn below. This time you would also have used CFD Fibonacci 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 take profit area.

Drawing CFD Fibo Expansion Indicator on a Downward CFD Trend - CFD Fibonacci Expansion Trading Tool

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