Fibonacci Fan
What is a Fibonacci Fan?
This fan will project lines out into the future which are potential support and resistance. It combines the traditional horizontal retracement levels with diagonal fan lines, similiar to the Gann Fan and Speedlines studies. You select recent swing high or low pivot points and then see how price is respecting the various lines. Try several swing points and see which is best. Then stick with these swing points until price moves outside the fan lines. Depending on your chart interval setting, this could be minutes to days.
Drawing Fan from a Swing Low Price Bar
- DBL-CLICK just BELOW the SL bar of your choice. A small Red circle forms at the bottom of this bar.
- Then SGL-CLICK just ABOVE the SH bar of your choice.
- Your fan is drawn from this SL bar upward.
Drawing Fan from a Swing High Price Bar
- DBL-CLICK just ABOVE the SH bar of your choice. A small Blue circle forms at the top of this bar.
- Then SGL-CLICK just BELOW the SL bar of your choice.
- Your fan is drawn from this SH bar downward.
Re-Drawing a Fan
To re-draw a new fan, after any fan is already drawn, simply start the DBL-CLICK process again under a new SL or over a new SH bar.
More
- You can only have one fan drawn on a chart at a time
- You cannot insert another time frame’s fan into another chart
- The latest drawn fan will save upon program exit and currency or time changes
- To remove the efs study, go to the ‘Chart Options’ menu again, and find the ‘Remove’ option
- To clear up the efs, if the chart ever gets ‘messed up’, go to ‘Chart Options’ menu and then the ‘Reload’ option. Click on this efs to reload a fresh copy into the chart
- A Double-Click is a fast...click click
- This study is, of course, used to help predict retracements after a move from a SL to SH or from a SH to a SL. The standard retracement values
utilized are: 23.6% - 38.2% - 50% - 61.8% - 76.4% - The YELLOW lines are reference lines to help you visualize and box in your trading area