Online Trading Concepts

Fibonacci Fans

Fibonacci Fans use Fibonacci ratios based on time and price to construct support and resistance trendlines; also, Fibonacci Fans are used to measure the speed of a trend's movement, higher or lower.

The chart below of the S&P 500 exchange traded fund (SPY) shows an uptrend that retraced to the 38.2% Fibonacci Fan:

fibonacci fans

The Fibonacci ratio is also used to predict areas of time in which price might change course; Fibonacci Time Extensions are discussed next.

Next Page - Fibonacci Time Extensions

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