HOW TO USE THE FIBONACCI SPEED RESISTANCE FAN

The Fibonacci speed resistance fan is a technical analysis tool used to identify support and resistance levels in a trend. Here is a guide on how to use it:

Step 1: Identify the Trend

Select a significant point on the chart, such as an important high or low. This will be the starting point for the Fibonacci speed resistance fan.

Step 2: Draw the Fibonacci Speed Resistance Fan

Select the Tool: In your trading platform (like TradingView or MetaTrader), select the Fibonacci speed resistance fan tool.

Draw the Base Line: Draw a line from the starting point to another significant point on the chart. This will establish the main trend line.

Adjust the Lines: The tool will automatically draw a series of diagonal lines based on Fibonacci percentages (38.2%, 50%, 61.8%, etc.).

Step 3: Interpret the Lines

Resistance Lines: The diagonal lines represent resistance levels in an uptrend. If the price breaks one of these lines, it may indicate a continuation of the trend.

Support Lines: In a downtrend, the diagonal lines act as support levels. If the price breaks one of these lines, it may indicate a reversal of the trend.

Practical Example

Uptrend: If the price of an asset is rising, draw the fan from a significant low to a recent high.

Downtrend: If the price is falling, draw the fan from a significant high to a recent low.

Additional Resources

You can find more details on how to use the Fibonacci speed resistance fan on TradingView and MetaTrader 5.

If you need more details or have any other questions, let me know!