Fibonacci tools
Fibonacci fan
Three sloping lines from a swing point through the 38.2%, 50% and 61.8% retracement levels.
The idea in plain words
Retracements are horizontal, but trends slope. The fan turns the retracement levels into diagonal lines, so the support and resistance moves with time.
How it is calculated
Click the start and end of a move; lines run from the start through the retracement levels at the end point's time.
Line from start through (end time, end − (end − start) × ratio), ratios 38.2%, 50%, 61.8%How to use it
- In a pullback, watch for the price to find support at one of the fan lines.
Drawing conclusions
- Breaking the 61.8% fan line suggests the trend is in doubt.
Example
After a rally, the price pulls back along the 38.2% fan line for a week and then bounces from it.
Prices in examples are illustrative.
Watch out for
- Sensitive to the chosen points and zoom level.
A little history
A variant of Fibonacci retracements.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.