Fibonacci Speed/Resistance Fan

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Fibonacci Speed/Resistance Fan is an analytical drawing tool used to indicate the support and resistance levels of an existing trend and the price level at which possible changes (rise or fall) in the trend may occur. First, a trend line between two extreme points - a trough and opposing peak - is drawn. Then an invisible vertical line is drawn through the second extreme point. Lines are drawn from the first extreme point and intersect the invisible vertical line at the selected time/price percentages of the distance between the beginning and the end of this line. The most common percentages are 1/3 and 2/3, but you can draw up to 11 lines based on any selected distance percentages as well as on the Fibonacci percentages. Some of the lines might not be visible, because of the scale limitations of the chart window.

These lines can indicate the support and resistance levels of an existing trend. Usually the price remains above the higher speed line. If the higher line is penetrated, prices generally fall to the lower speed line, which, in many cases, becomes the support level. If prices break below the higher speed line, fall to the lower line, and then begin to rise, the lower speed line becomes the resistance level.

Note. Fibonacci Arcs and Fibonacci Fan lines are sometimes used together to anticipate support and resistance as the Fibonacci studies may intersect.


Inserting Fibonacci Speed/Resistance Fan

  1. Select one of three ways to insert the Fibonacci Speed/Resistance Fan:
    • In the menu select Insert, point to Drawing and then to Fibonacci Tools and click Speed/Resistance Fan.
    • Click the Fibonacci Speed/Resistance Fan Drawing FibSpeedResistanceFan.png icon on the Drawing toolbar.
    • Click the arrow next to the Drawing Tools Show Hide Drawing Tools.png icon on the Main toolbar, point to Fibonacci Tools and select Speed/Resistance Fan.
  2. The cursor will change to the Fibonacci speed/resistance fanFibFAN pointer.gif.
  3. In the Chart Area click where the Fibonacci Speed/Resistance Fan is to begin.
  4. Then keeping the left mouse button pressed move the pointer up, down, left, or right to position the Fibonacci Speed/Resistance Fan.
  5. Release the button.


Moving Fibonacci Speed/Resistance Fan

To move a Fibonacci Speed/Resistance Fan without changing its shape:

  1. Point the cursor at the Fibonacci Speed/Resistance Fan that is to be moved.
  2. The cursor Pointer Pointer.png will change into Hand Hand.png.
  3. Then keeping the left mouse button pressed drag the drawing tool to the desired position.
  4. Release the button.


Reshaping Fibonacci Speed/Resistance Fan

To reshape a Fibonacci Speed/Resistance Fan (change its size or slope of the lines):

  1. Point the cursor at the Fibonacci Speed/Resistance Fan that is to be reshaped.
  2. The cursor Pointer Pointer.png will change into Hand Hand.png.
  3. Left-click the Fibonacci Speed/Resistance Fan and 2 small squares will appear on the trend line.
  4. Drag one of these squares located on the trend line till the drawing tool becomes of the desired shape.
  5. Release the button.


Formatting Fibonacci Speed/Resistance Fan

In MultiCharts one can change the settings of the Fibonacci Speed/Resistance Fan. All the changes are performed in the Format Fibonacci Speed/Resistance Fan window.

Each instance of a Fibonacci speed/resistance fan has its own Format window. The number (if there are 2 or more Fibonacci speed/resistance fan instances in the same Chart Window) are shown in the titlebar of each Format Fibonacci Speed/Resistance Fan window.

One can change the settings of the Fibonacci Speed/Resistance Fan: the color, style and weight of the trend line, squares and the fan lines (up to 8 fan lines are available). It is possible to specify the desired distance percentages on which the fan lines are based or the Fibonacci percentages can be used. One can also choose to show or not the labels (price or/and value), select their font, style, size and the character set. It is possible to apply the strikeout or underline effects to the labels. It is possible to specify the time and price coordinates.


Setting Style

  1. Access the Format Fibonacci Speed/Resistance Fan window.
    To access the Format Fibonacci Speed/Resistance Fan window:
    1. Drag the cursor to the Fibonacci speed/resistance fan insatnce that is to be formatted.
    2. The cursor Pointer Pointer.png will change into Hand Hand.png, then double-click.
    Or
    1. Drag the cursor to the Fibonacci speed/resistance fan instance that is to be formatted.
    2. The cursor Pointer Pointer.png will change into Hand Hand.png, then right-click.
    3. Select Format 'Fibonacci Speed/Resistance Fan'… from the shortcut menu.
    Or
    1. In the Format Objects window select the Drawings tab.
    2. Select the Fibonacci speed/resistance fan instance that is to be formatted and press the Format… button.
  2. Select the Data tab.
  3. To display or hide any elements of the Fibonacci Speed/Resistance Fan check or uncheck the corresponding check boxes.
  4. In the Price column select the corresponding cells and enter the desired values. These values determine at what points the fan lines intersect the trend line.
  5. In the Color column, using the drop-down lists, select any of the preset 40 colors for the fan lines or click the Others… button to select the custom colors.
  6. In the Style column, using the drop-down lists, select the desired styles for the fan lines.
  7. In the Weight column, using the drop-down lists, select the desired weights for the fan lines.
  8. Check the Divide Time check box to draw fan lines based on the height of the trend line.
  9. Check the Divide Price check box to draw fan lines based on the length of the trend line.
  10. Check theHide Time check box to hide Divide Time lines.
  11. Check the Hide Price check box to hide Divide Price lines.
  12. Check the Use as Default check box to use these settings as the default settings when creating other Fibonacci Speed/Resistance Fans.
  13. Click OK.


Setting Labels

  1. Access the Format Fibonacci Speed/Resistance Fan window.
    To access the Format Fibonacci Speed/Resistance Fan window:
    1. Drag the cursor to the Fibonacci speed/resistance fan insatnce that is to be formatted.
    2. The cursor Pointer Pointer.png will change into Hand Hand.png, then double-click.
    Or
    1. Drag the cursor to the Fibonacci speed/resistance fan instance that is to be formatted.
    2. The cursor Pointer Pointer.png will change into Hand Hand.png, then right-click.
    3. Select Format 'Fibonacci Speed/Resistance Fan'… from the shortcut menu.
    Or
    1. In the Format Objects window select the Drawings tab.
    2. Select the Fibonacci speed/resistance fan instance that is to be formatted and press the Format… button.
  2. Select the Labels tab.
  3. Check or uncheck the Show Labels check box to display or hide the labels.
  4. Enter the desired font in the Font field or select it from the Font list.
  5. Enter the desired font style in the Font Style field or select it from the Font Style list.
  6. Enter the desired font size in the Size field or select it from the Size list.
  7. In the Effects group check or uncheck the Strikeout or/and Underline check boxes to display the labels struck out or/and underlined.
  8. From the Character Set drop-down list select the desired character set.
  9. Check the Use as Default check box to use these settings as the default settings when creating other Fibonacci Speed/Resistance Fans.
  10. Click OK.


Setting Coordinates Precisely

  1. Access the Format Fibonacci Speed/Resistance Fan window.
    To access the Format Fibonacci Speed/Resistance Fan window:
    1. Drag the cursor to the Fibonacci speed/resistance fan insatnce that is to be formatted.
    2. The cursor Pointer Pointer.png will change into Hand Hand.png, then double-click.
    Or
    1. Drag the cursor to the Fibonacci speed/resistance fan instance that is to be formatted.
    2. The cursor Pointer Pointer.pngwill change into Hand Hand.png, then right-click.
    3. Select Format 'Fibonacci Speed/Resistance Fan'… from the shortcut menu.
    Or
    1. In the Format Objects window select the Drawings tab.
    2. Select the Fibonacci speed/resistance fan instance that is to be formatted and press the Format… button.
  2. Select the Properties tab.
  3. In the Coordinates section enter the desired time coordinates in the Start Date and End Date fields or use the drop-down calendars.
  4. In the Coordinates section enter the desired price coordinates in the Start Value and End Value fields.
  5. Click OK.


Cloning Fibonacci Speed/Resistance Fan

To clone a Fibonacci Speed/Resistance Fan:

  1. Drag the cursor to the Fibonacci speed/resistance fan instance that is to be cloned.
  2. The cursor Pointer Pointer.png will change into Hand Hand.png, then right-click.
  3. Select Clone Drawing from the shortcut menu.