A Fibonacci Speed Resistance Fan consists of a drawn between two extreme points - a trough and opposing peak or a peak and opposing trough - on which a set of sequential speed resistance lines are drawn above (which represents time) and below (which represents price). These lines are drawn based on time/price percentages of the distance between the beginning and the end of the .
Speed resistance lines not only help to measure trend corrections but also measure the speed of a trend (the rate at which a trendline ascends or descends)
Traders can use the lines of the Fibonacci Speed and Resistance Fan to predict key points of resistance or support, at which they might expect price trends to reverse. Once a trader identifies patterns within a chart, they can use those patterns to predict future price movements and future levels of . Traders use the predictions to time their trades
Nobody appears to know whether Fibonacci tools work because markets exhibit some form of natural pattern or because many investors use Fibonacci ratios to predict price movements, making them a self-fulfilling prophecy. In any event, key levels tend to occur frequently at the 61.8-percent level (0.618) on both uptrends and downtrends
Fibonacci Speed and Resistance Fans vs. Fans
fans are another form of based on the idea that the market is geometric and cyclical in nature. A consists of a series of called angles.
Instead of relying on Fibonacci's golden ratio of 1.618, believed the 45-degree angle (geometric angles of time versus price) to be most important. The subsequently draws additional angles at 82.5, 75, 71.25, 63.75, 26.25, 18.75, 15, and 7.5 degrees. These angles are superimposed over a price chart to show potential levels
Step By Step Applying Fibonacci Speed and Resistance Fan
Some interpretation examples:
Example of how to identify if the move is Reversal or Retracement
All the above are now available with the Auto Fibonacci Speed and Resistance Fans Study ʙʏ DGT ☼☾,
LINK to Auto Fibonacci Speed and Resistance Fans Study
so gald to to hear those kind words, thnak you
Testing the drawinging accuracy of the auto version was performend with the manualy drawing tool and they perfectly match in linear scale chart
You have the ability to choose historical pivot highs/lows as well as devation input parameter to get higher timeframe values
"there are no invisible resistances they are previous highs/lows" do you mean this is feature that has to be there but not, i will be glad if you can present an example chart with the manually drawing tool similating the requirement
the only difference between the manual drawing tool and this automated version is that the time levels that corresponds in the future of time are not allowed.