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Home >  Technical analysis >  Graphical methods >  Figures > Fibonacci spiral


Fibonacci spiral





The logarithmic Fibonacci spiral provides connection between the price and time analysis. The spiral is built on the basis of a piece between two extreme points, set by the user. It is the answer to long searches of the decision, allowing to predict both the price, and time. The size of chambers increases proportionally to Fibonacci ratio 1.618 (this coefficient is set), and thus their form remains constant.

The spiral is easy for understanding and, theoretically, it is easy to apply in the markets. But, as it defines rotary points, signals of trading demand that positions got out to opposite current price trend (i.e. sale at the high price or buy at low price).

Fibonacci spiral
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