4.7 Fibonacci Fan

The Fibonacci Fan produces trend lines of support and resistance based on Fibonacci Retracement Ratio levels
This drawing tool is often used on HTF.
These fan lines can be used to estimate support and resistance levels, as well adding to other confluence factors.

The Fibonacci Fan produces trend lines of support and resistance based on Fibonacci Retracement Ratio levels
This drawing tool is often used on HTF.
These fan lines can be used to estimate support and resistance levels, as well adding to other confluence factors.

Key Points of the Lesson
UTILITY
Useful for determining when the slope of a move has become overextended.
Fibonacci Fan includes a time aspect in the analysis.
Useful for finding a good time taken and an angle for a retracement.
Powerful in combination with Fibonacci Time and retracements.

IMPLEMENTATION
For resistance ⇒ pull from high left to low right pivot.
For support ⇒ pull from low left to high right pivot.
The levels of the Fan can act as support/resistance.
Used on 4h/4h+.
levels:
0
0.25
0.382
0.5
0.618
0.75
1

PRACTICAL EXAMPLE
TIPS AND TRICKS
Focus on the fan lines as support/resistance levels.
0.618 fan line is usually stronger ⇒ provides a good angle and time aspect for a retracement.
Can be used on every macro chart in combination with other tools. Build confluence!

TAKE HOME MESSAGE
Include the time aspect.
Two clicks on significant pivots.
Used for high time confluence.

Levels Fibonacci Fan