How to Draw Fibonacci Expansion CFDs Indicator Tool on Upwards CFD Trend

How Do You Draw CFD Fibonacci Expansion for CFD Uptrend?

We use CFD Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 oftenly used CFD Fibonacci Expansion areas: 61.8%CFD Fibonacci Expansion Level & 100% CFD Fibonacci Expansion Level, these CFD Fibonacci Expansion Levels are used for setting take profit areas.

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 up - the CFD Fibonacci Expansion indicator is drawn upwards.

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

How to Draw CFD Fib Expansion on Upward CFD Trend - How to Draw Fibonacci Expansion on Up CFD Trend

From the above CFD Fibonacci Expansion indicator tool example, the upward trend continued & both 61.80% and 100.0% CFD Fibonacci Expansion levels were all hit after which the cfd price retraced again after getting to the 100.00% CFD Fibonacci Expansion level.

From the CFD Fibo Expansion indicator tool examples above, after drawing this CFD Fibonacci Expansion tool there are two levels that are used to show the profit-taking areas, 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 CFDs Fib Expansion Levels on CFDs Charts

We use CFD Fibonacci Expansion levels to estimate where the trend movement will reach. There are 2 important CFD Fibo Expansion areas: 61.8% & 100% CFD Fibonacci Expansion Areas, 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 Fibo Expansion Technical Indicator 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 plotted, marked as Chart point 1, Chart point 2 & Chart point 3.

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

How to Draw Fib Expansion CFDs Indicator Tool on Upwards CFD Trend

Please note where these CFD Fib Expansion zones are drawn - CFD Fibonacci Expansion zones are plotted above the Fibonacci 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 Areas.