Fibonacci Fan

Fibonacci fans are sets of fanlike trendlines. The three Fibonacci fans project into the future with slopes at 38.2, 50 and 61.8% (additional levels are also available). To reach retracement levels, the trader divides the low-end and high-end price difference by ratios determined by the Fibonacci series, typically 23.6 percent, 38.2 percent, 50 percent, and 61.8 percent. When daily prices exceed these fan trendlines, we can evaluate whether there is price resistance or support at these intersections, and make predictions about future price movements on the market based on it. If prices remain at the fan line, there is support there. If the price quickly exceeds the fan line, you wo n’t see support until the next fan line.