Fibonacci tools
Fibonacci channel
A trend channel with extra parallel lines at Fibonacci multiples of its width.
The idea in plain words
When a trend channel breaks, the next stopping points are often Fibonacci multiples of the channel's width away.
How it is calculated
Click two points for the base line and a third for the channel width; lines are added at 0, 61.8%, 100%, 161.8% and 261.8% of that width.
Line k = base line + width × ratioHow to use it
- Use the outer lines as targets after a channel breakout.
Drawing conclusions
- Most useful in clean, steady trends.
Example
A stock breaks above its rising channel and pauses at the 161.8% line.
Prices in examples are illustrative.
Watch out for
- Like all channels, it needs a clear trend to be useful.
A little history
A Fibonacci variant of the classic trend channel.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.