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Fibonacci Fan

Three trend lines fanning out from a swing high or low at Fibonacci ratios, used as sloping support and…
In plain English

Three trend lines fanning out from a swing high or low at Fibonacci ratios, used as sloping support and resistance.

To draw a Fibonacci fan, take a swing, then draw lines from its start through points at 38.2%, 50% and 61.8% of the swing's height.

The fan gives sloping levels that move with time, unlike flat retracements.

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