Fibonacci Fan

Brief

Working with a Fibonacci fan.

Details

Fibonacci fan is a set of Fibonacci levels defined for a trend line drawn through two points (usually the high and low in a given period).The vertical distance between the two points is divided by the key Fibonacci ratios of 0.382, 0.500 and 0.618, and these levels are supposed to indicate support and resistance levels. Traders usually draw both Fibonacci arcs and Fibonacci fans to define support and resistance points where the Fibonacci elements cross.