Fibonacci Arcs

Fibonacci arcs are half circles that consist of one invisible trend line connecting two points from high to low, and three curves that intersect this trendline at the Fibonacci level 38.2%, 50 % and 61.8%. Those three key levels are important levels for traders to transaction decisions, and Fibonacci arcs represent areas of potential support and resistance levels based on a market range. The arcs are based on both price and time, which is getting wider when the base line is longer, or getting narrower when the base line is shorter. Arcs show where the price could pull back to, and potentially bounce off of.