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Fibonacci Fans

Discussion in 'Fibonacci Trading' started by Kaitlin, Oct 20, 2015.

  1. Kaitlin

    Kaitlin Forum Member

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    From Fibonacci retracements, we are able to draw Fibonacci fans which are a series of trendlines starting from the same point.

    [​IMG]

    We added the Fibonacci fans in red.

    Draw a vertical line down from the peak of the chosen swing. Then, draw a trendline that passes through the lowest point of the swing and the point where the vertical line and a retracement level intersect. There are three retracement levels, so there are three trendlines.

    For down swings, apply the same logic.

    These trendlines act as support and resistance as circled in black.
     

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