# Fibonacci Speed/Resistance Arcs

Fibonacci Speed/Resistance Arcs are an analytical drawing tool used to determine the direction and speed of the trend reversal and indicate the support/resistance levels. First, a trend line between two extreme points - a trough and opposing peak - is drawn. Then arcs are created and intersect the speed line at the selected distance percentages between the beginning and the end of this trend line. The most common percentages are 1/3 and 2/3, but you can draw up to 11 arcs based on any selected distance percentages as well as on the Fibonacci percentages. Some of the arcs might not be visible, because of the scale limitations of the chart window.

The Fibonacci Speed/Resistance Arcs can indicate the support and resistance levels. Usually the price remains above the higher arc. If the higher arc is penetrated, prices generally fall to the lower arc, which, in many cases, becomes the support level. If prices break below the higher arc, fall to the lower arc, and then begin to rise, the lower arc becomes the resistance level.

## Inserting Fibonacci Speed/Resistance Arcs

1. Select one of three ways to insert the Fibonacci Speed/Resistance Arcs:
2. The cursor will change to the Fibonacci speed/resistance arcs .
3. In the Chart Area click where the Fibonacci Speed/Resistance Arcs are to begin.
4. Then keeping the left mouse button pressed move the pointer up, down, left, or right to position the Fibonacci Speed/Resistance Arcs.
5. Release the button.

## Moving Fibonacci Speed/Resistance Arcs

To move the Fibonacci Speed/Resistance Arcs without changing their shape:

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

## Reshaping Fibonacci Speed/Resistance Arcs

To reshape the Fibonacci Speed/Resistance Arcs (change the slope of the trend line or the arcs' radius):

1. Point the cursor at the Fibonacci Speed/Resistance Arcs to reshape the drawing tool.
2. The cursor Pointer will change into Hand .
3. Left-click the Fibonacci Speed/Resistance Arcs and 2 small squares will appear at both ends of the trend line.
4. Drag one of these squares till the drawing tool becomes of the desired shape.
5. Release the button.

## Formatting Fibonacci Speed/Resistance Arcs

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

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

One can change the settings of the Speed/Resistance Arcs: the color, style and weight of the trend line and the arcs (up to 12 arcs are available). It is possible to specify the desired distance percentages on which the arcs are based or the Fibonacci percentages can be used. The Speed/Resistance Arcs can be extended to the shape of an ellipse or circle. 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.

### Setting Style

1. Access the Format Fibonacci Speed/Resistance Arcs window.
To access the Format Fibonacci Speed/Resistance Arcs window:
1. Drag the cursor to the Fibonacci speed/resistance arcs instance that is to be formatted.
2. The cursor Pointer will change into Hand , then double-click.
Or
1. Drag the cursor to the Fibonacci speed/resistance arcs instance that is to be formatted.
2. The cursor Pointer will change into Hand , then right-click.
3. Select Format 'Fibonacci Speed/Resistance Arcs'… from the shortcut menu.
Or
1. In the Format Objects window select the Drawings tab.
2. Select the Fibonacci speed/resistance arcs 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 Arcs 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 arcs intersect the trend line.
5. In the Color column, using the drop-down lists, select any of the preset 40 colors for the arcs 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 arcs.
7. In the Weight column, using the drop-down lists, select the desired weights for the arcs.
8. Check the Display Full Arc check box to extend the arcs to the shape of an ellipse or circle (depending on the Divide Time/Price separately setting).
9. Check the Divide Time/Price Separately check box to draw the arcs where time and price are independent (uncheck to create constant radius arcs).
10. Check the Use as Default check box to use these settings as the default settings when creating other Fibonacci Speed/Resistance Arcs.
11. Click OK.

### Setting Labels

1. Access the Format Fibonacci Speed/Resistance Arcs window.
To access the Format Fibonacci Speed/Resistance Arcs window:
1. Drag the cursor to the Fibonacci speed/resistance arcs instance that is to be formatted.
2. The cursor Pointer will change into Hand , then double-click.
Or
1. Drag the cursor to the Fibonacci speed/resistance arcs instance that is to be formatted.
2. The cursor Pointer will change into Hand , then right-click.
3. Select Format 'Fibonacci Speed/Resistance Arcs'… from the shortcut menu.
Or
1. In the Format Objects window select the Drawings tab.
2. Select the Fibonacci speed/resistance arcs 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. From the Align drop-down list select the desired type of the labels' alignment.
10. Check the Show Price or/and Show Percent Value check boxes to show price or/and percent labels.
11. Check the Use as Default check box to use these settings as the default settings when creating other Fibonacci Speed/Resistance Arcs.
12. Click OK.

### Setting Coordinates Precisely

1. Access the Format Fibonacci Speed/Resistance Arcs window.
To access the Format Fibonacci Speed/Resistance Arcs window:
1. Drag the cursor to the Fibonacci speed/resistance arcs instance that is to be formatted.
2. The cursor Pointer will change into Hand , then double-click.
Or
1. Drag the cursor to the Fibonacci speed/resistance arcs instance that is to be formatted.
2. The cursor Pointer will change into Hand , then right-click.
3. Select Format 'Fibonacci Speed/Resistance Arcs'… from the shortcut menu.
Or
1. In the Format Objects window select the Drawings tab.
2. Select the Fibonacci speed/resistance arcs 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 Arcs

To clone a Fibonacci speed/resistance arcs instance:

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