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

How Do You Draw CFD Fibonacci Extension for CFD Uptrend?

We use CFD Fibonacci Extension Zones to estimate where the trend movement will reach. There are 2 oftenly used CFD Fibonacci Extension levels: 61.80%CFD Fibonacci Extension Level & 100% CFD Fib Extension Level, these CFD Fibonacci Extension Levels are used for setting take profit levels.

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

These CFD Fibonacci Extension zones are shown as horizontal lines above the CFD Fibonacci Extension technical indicator, showing profit-taking areas. In the cfd example explained below if you had used the 100.00% CFD Fibonacci Extension level you would have made good profit from using this setup.

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

From the above CFD Fibonacci Extension indicator tool example, the upward trend continued and both 61.8% and 100.00% CFD Fibonacci Extension zones were all hit after which the cfd price retraced again after getting to the 100.00% CFD Fibonacci Extension level.

From the CFD Fibonacci Extension indicator tool example above, after drawing this CFD Fibonacci Extension tool there are 2 levels which are used to show the profit-taking areas, these 2 CFD Fibonacci Extension areas are drawn as horizontal lines across the cfds chart marked as 61.8%CFD Fibonacci Extension Level & 100% CFD Fib Extension Level.

Explanation of How to Draw Fibonacci Extension Levels on CFD Charts

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

To draw CFD Fibonacci Extension 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 Extension Indicator is drawn using three chart points as illustrated on the cfd example explained below of how to draw the CFD Fibonacci Extension Technical Indicator Tool.

The CFD Fibonacci Extension examples explained below shows the Three Chart Points where the CFD Fibonacci Extension indicator is plotted, 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 Extension Technical Indicator Tool example explained below.

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

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