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chart_analysis:fibonacci_arcs [2019/06/24 19:38] 127.0.0.1 external edit |
chart_analysis:fibonacci_arcs [2023/09/15 22:54] jayanthi [Introduction] |
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| ===== Introduction ===== | ===== Introduction ===== | ||
| - | Fibonacci Arcs are half circles that extend out from a trend line. The first and third arcs are based on the Fibonacci ratios .382 (38.2%) and .618 (61.8%), respectively, which are often rounded to 38% and 62%. The middle arc is set at .50 or 50%. After an advance, Fibonacci Arcs are measured using a **Base Line** that extends from trough to peak. Arcs are drawn along this line with radii that measure .382, .50 and .618 of the Base Line. These arcs mark potential support or reversal zones to watch as prices pull back after the advance. After a decline, Fibonacci Arcs are used to anticipate resistance or reversal zones for the counter-trend bounce. This article will explain the Fibonacci ratios and provide examples using Fibonacci Arcs to project support and resistance. | + | Fibonacci Arcs are versatile tools that help identify support and resistance levels in a changing market. It does this by incorporating a time component, which gives you a more comprehensive and adaptable view of price barriers. |
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| + | Fibonacci Arcs are half circles that extend out from a trend line. The first and third arcs are based on the Fibonacci ratios 0.382 (38.2%) and 0.618 (61.8%), respectively, often rounded to 38% and 62%. The middle arc is set at 0.50 or 50%. After an advance, Fibonacci Arcs are measured using a **Base Line** that extends from trough to peak. Arcs are drawn along this line with radii that measure 0.382, 0.50, and 0.618 of the Base Line. These arcs mark potential support or reversal zones to watch as prices pull back after the advance. After a decline, Fibonacci Arcs are used to anticipate resistance or reversal zones for the counter-trend bounce. This article will explain the Fibonacci ratios and provide examples using Fibonacci Arcs to project support and resistance. | ||
| ===== The Sequence and Ratios ===== | ===== The Sequence and Ratios ===== | ||
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| ===== SharpCharts ===== | ===== SharpCharts ===== | ||
| - | You can use our [[docs>chartnotes|ChartNotes annotation tool]] to add Fibonacci Arcs to your charts. Below, you'll find an example of a chart annotated with a Fibonacci Arc. | + | You can use our [[https://support.stockcharts.com/doku.php?id=chartnotes|ChartNotes annotation tool]] to add Fibonacci Arcs to your charts. Below, you'll find an example of a chart annotated with a Fibonacci Arc. |
| {{:chart_analysis:fibonacci_arcs:farc-9-shch.png|Chart 8 - Fibonacci Arcs}} | {{:chart_analysis:fibonacci_arcs:farc-9-shch.png|Chart 8 - Fibonacci Arcs}} | ||
| - | To learn more about how to add this annotation to your charts, check out our Support Center article on [[docs>chartnotes:line_studies#fibonacci_arcs|ChartNotes' Line Study Tools]]. | + | To learn more about how to add this annotation to your charts, check out our Support Center article on [[https://support.stockcharts.com/doku.php?id=chartnotes:line_studies#fibonacci_arcs|ChartNotes' Line Study Tools]]. |
| ===== Further Study ===== | ===== Further Study ===== | ||