How to Draw Fibonacci Expansion CFDs Indicator Tool on Downwards CFD Trend
How Do You Draw CFDs Fibonacci Retracement Expansion for CFD Downtrend?
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.
As a trader you would also have used CFD Fibonacci Expansion level 100.0%, just where the price reached as shown on the CFD Fibonacci Expansion example explained and illustrated below. That would have been a good take profit area.
How to Draw CFD Fib Expansion on Downward CFD Trend - How to Draw Fibonacci Expansion on Down CFD Trend
From the CFD Fibonacci Expansion indicator tool example above, after drawing this CFD Fibonacci Expansion indicator tool there are 2 levels that are used to show the profit taking levels, these two CFD Fibonacci Expansion zones are drawn as horizontal lines across the cfds chart marked as 61.8%CFD Fibonacci Expansion Level & 100% CFD Fibonacci Expansion Level.
Explanation of How to Draw Fibonacci Expansion Levels on CFD Charts
We use CFD Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 oftenly used CFD Fibonacci Expansion levels: 61.8% CFD Fibonacci Expansion Level and 100% CFD Fibonacci Expansion Levels, these are used for setting taking 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 CFD trend. Where the cfd price retracement reaches is used as chart point 3. CFD Fibonacci Expansion Indicator tool is drawn using three chart points as shown 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 Draw Fib Expansion CFDs Indicator Tool on Downwards CFD Trend
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 - 61.8% CFD Fibonacci Expansion Level and 100.0% CFD Fibonacci Expansion Level.
