Fibonacci tools
Fibonacci time zones
Vertical lines at Fibonacci numbers of time units (1, 2, 3, 5, 8, 13…) from a starting point.
The idea in plain words
The same sequence that gives price ratios is applied to time: turning points are said to cluster at Fibonacci counts of candles after an important high or low.
How it is calculated
Click the starting point and a second point that sets one time unit; lines follow at 1, 2, 3, 5, 8, 13, 21… units.
Line k at start + F(k) × unit, F = 0, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89…How to use it
- Watch for possible turns near the later lines, especially if they coincide with price levels.
Drawing conclusions
- Treat the lines as windows of attention, not predictions.
Example
From a major low, with one unit = 5 days, lines fall 40, 65 and 105 days later; a top forms near the 65-day line.
Prices in examples are illustrative.
Watch out for
- Time projections are among the least reliable chart tools.
A little history
An application of the Fibonacci sequence to time, popular in Elliott wave circles.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.