For some chartists straight lines are simply too limited. They bring market geometry to another level by using Arcs, Circles and Spirals. These Fibonacci-based geometric constructions are used to indicate and predict areas of support and resistance, to pinpoint turning points in the market, to assess the speed of a trend and to identify underlying structures of price moves. They measure the geometry, in price and time, of the market and allow a trader to fit past price action and then predict future moves.
They can be used to identify buying and selling opportunities at key levels, depending on the specific rules of entry and exit a trader may have. Conservative traders look for additional confirmation before entering a trade. Whether these geometric shapes are used alone or in combination with other techniques, they can be useful tools in the trader's toolbox. TradingView has smart drawing tools like
Fib Circles,
Fib Arcs and the Fib Spiral that allow users to visually identify these shapes and geometric levels on a chart.
