Fibonacci Fan consists of three Diagonal lines and these lines use Fibonacci Ratio to measure support & resistance level. Like Fibonacci Fan the way of drawing Fibonacci Fan is also same. In this case a Swing High and Swing Low will be needed to draw the Fibonacci Fan. After finding swing low and swing high point a line need to draw from low point to high point. Then three lines will be available with the Fibonacci Ratio like 38.2%, 50.0% and 61.8%. Look at the graph. The three lines worked as a support and resistance level. when price fallen at the first day it bounced back from its second support line. Then again went up and it didn’t break the last support. At last the price went up from the last support line. So the last support line was very strong.
Chart Analysis
