What is Difference between CFDs Fibo Retracement & CFD Fibonacci Extension?

How to use CFDs Fibo Retracement & Extension and the Difference between CFDs Fibo Retracement & Extension

CFD Fibonacci Retracement Levels

Fibonacci retracement is drawn between 2 chart points but Fib extension is drawn using Three chart points.

CFDs Fibonacci Retracement Level example explained and illustrated below where the cfd trend is heading down between Chart point 1 and Chart point 2, then after Chart point 2 the cfd price retraces then it continues heading upward in the original upward trend. Note that this CFDs Fibonacci Retracement Levels indicator is drawn from Chart point 1 to Chart point 2 in the direction of the trend.

CFDs Fib Retracement Levels - How to Draw CFDs Fibonacci Retracement Zones

CFD Fibonacci Extension Levels

Fibonacci retracement is drawn between 2 chart points but Fib extension is drawn using Three chart points.

To draw these CFD Fibonacci Extension zones we wait until the cfd price retracement is complete & the price starts to move in original direction of the CFD trend. Where the retracement reaches is used as chart point 3 for Fibo extension.

The CFD Fibonacci Extension examples explained below shows the Three chart Points where the CFD Fibonacci Extension indicator is drawn, marked as chart point 1, 2 and 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 retracement reached as illustrated & shown on the CFD Fibonacci Extension examples explained & illustrated below.

CFD Fibonacci Extension Levels - How to Draw CFD Fibonacci Extension Zones

Please note where these CFD Fib Extension levels are drawn - CFD Fibonacci Extension zones are plotted above the CFD Fibonacci Extension indicator, these are the points where a trader will place the take-profit orders.