CFDs Fib Extension Explained
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 Fib Extension levels on MetaTrader 4 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 Extension MT4 CFD Trading Indicator is drawn using three chart points as illustrated & shown on the cfd example explained below of how to draw the CFD Fibonacci Extension Indicator MT4 Tool.
The CFD Fibo Extension MT4 Indicator examples explained below shows the Three Chart Points where the CFD Fibo Extension MT4 technical 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 Fibo Extension MT4 Indicator Tool example explained below.
How to Use CFDs Fib Extension Levels - CFDs Fib Extension Explained
How to Use CFDs Fib Extension Levels - CFDs Fib Extension Explained
Please note where these CFD Fib Extension levels are drawn - CFD Fibonacci Extension zones are plotted above the MT4 Fibonacci 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.
Upward CFD Trend - How to Use Fibonacci Extension in CFD Course - How to Use CFD Fibonacci Extension Levels - CFD Fibonacci Extension Explained
We use CFD Fibonacci Extension Levels to estimate where the trend movement will reach. There are Two important CFD Fibonacci Extension levels: 61.80%CFD Fibonacci Extension Level & 100% CFD Fib Extension Level, these CFD Fib Extension Areas are used for taking profit.
On the CFD Fibo Extension MT4 indicator example explained and illustrated below you can see that the CFD Fibo Extension MT4 technical indicator is drawn along the direction of the trend, since the trend is upward - the MetaTrader 4 CFD Fibonacci Extension technical indicator is drawn upwards.
These CFD Fibonacci Extension zones are shown as horizontal lines above the CFD Fibo Extension MT4 cfd technical technical indicator, showing profit taking areas. In the cfd example explained below if you had used the 100.00% CFD Fibonacci Extension level the you would have made good profit from this setup.
How to Use CFDs Fib Extension Levels - CFDs Fib Extension Explained
How to Use CFDs Fib Extension Levels - CFDs Fib Extension Explained
From the above CFD Fibo Extension MT4 indicator examples, the upwards trend continued and both 61.8% and 100.00% CFD Fibonacci Extension zones were all hit after which cfd price retraced again after getting to the 100.00% CFD Fibonacci Extension level.
CFDs Fibonacci Extension Explained
Since we use the CFD Fibo Extension MT4 indicator tool to estimate take profit levels, how do we draw MT4 Fibonacci Extension in a downward CFD trend?
We draw the CFD Fibo Extension MetaTrader 4 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 Extension MetaTrader 4 indicator tool in the direction of the trend. In the CFD Fibonacci Extension 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 Extension indicator above & how CFD Fibonacci Extension technical indicator is drawn below. This time you would also have used CFD Fibonacci Extension level 100.0%, just where the price reached as illustrated on the cfd example explained below. That would have been a good take profit level.
How to Use CFD Fibonacci Extension Levels - CFD Fibonacci Extension Explained
How to Use CFD Fibonacci Extension Levels - CFD Fibonacci Extension Explained
From the CFD Fibo Extension MT4 indicator examples above, after drawing this MetaTrader 4 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 cfd price chart marked as 61.8%CFD Fibonacci Extension Level & 100% CFD Fib Extension Level.
