Fibonacci Fans
Fibonacci fans are composed of diagonal lines. After the high and low points of the chart are located, and joined. This joining line is then divided into 38.2%, 50% and 61.8%, and lines are drawn from the leftmost point through each of these points. These lines indicate areas of support and resistance. This is again a version of Fibonacci Retracements like Fibonacci Arcs where the Retracement levels are not considered as flat levels but breaking the area in angles. Similar to Arcs it takes into account the time i.e. probability of reaching the expected Fibonacci retracement level going low with time. Fibonacci Fans (with other Fibonacci indicators) are shown in figure 13 as follows.
Fibonacci Arcs and Fibonacci Fans- Example 3:
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