Fibonacci Fan

Fibonacci Fans use Fibonacci ratios based on time and price to construct support and resistance trendlines

clipped from www.investopedia.com Fibonacci Fan A charting technique consisting of three diagonal lines that use Fibonacci ratios to help identify key levels of support and resistance. clipped from www.youtube.com clipped from www.investopedia.com Fibonacci fans are created by first drawing a trendline through two points (usually the high and low in a given period), and then by dividing the vertical distance between the two points by the key Fibonacci ratios of 38.2%, 50% and 61.8%. The result of these divisions each represent a point within the vertical distance. The three 'fan' lines are then created by drawing a line from the leftmost point to each of the three representing a Fibonacci ratio.