Fibonacci Fans charting technique
Fibonacci Fans are drawn as speed resistance lines in the same way as the arcs, with the exception that they are drawn at the Fibonacci levels of 23.6%, 38.2% , 50%, 61.8% and 76.4% on vertical some line levels. These lines are considered to serve as levels of support for developing retracements or to signal a new descending trend. And, after a break, they can assess the levels of resistance.
To display Fibonacci Fans a trend line is drawn between two extreme points on the chart. In the same way that lines are drawn for the arcs, the lines for fans are drawn between the extreme lowest point and the opposing high peak. Then an invisible vertical line is drawn through the second extreme point. Then, three trend lines are drawn from the first extreme point so that they pass through the invisible vertical line at the Fibonacci levels of 38.2%, 50% and 61.8%.