What it is
A Fibonacci fan is a sloping version of Fibonacci retracement. It asks not just how far price might pull back, but how far it might pull back by a given time.
WickSpeak anchors the fan on the last two swings, so it updates as new swings form, and extends the lines well past the latest candle.
How it is calculated
1. Find the last two swings using the swing size setting: the start and end of the latest move. 2. Measure the price distance of that move. 3. On the end swing's candle, mark the points 23.6%, 38.2%, 50%, 61.8% and 78.6% of that distance. 4. Draw a line from the start swing through each of those points and extend it forward.
Settings
| Setting | Default | Range | What it changes |
|---|---|---|---|
| swing size | auto | auto, or a fixed 0.25%, 0.5%, 1%, 2%, 3%, 5%, 8%, 12% or 20% | How big a move must be to count as a swing. It decides which move the fan is drawn on. |
How to read it
How to trade it
- 1
Draw on a clear trend, for example the latest rally on US30 1 hour.
- 2
Entry trigger: price pulls back to the 38.2% or 61.8% fan line and closes back in the trend direction.
- 3
Stop: beyond the next fan line, for example 40 to 80 points on US30 1 hour.
- 4
Target: the end of the last swing, then beyond it.
- 5
Combine with flat Fibonacci retracement levels: a fan line crossing a retracement level gives a stronger area.
A long off a fan line is proved wrong if price closes below the next line down, and the whole idea fails below the 78.6% line.
WickSpeak draws the five fan lines from the last swing and writes a plain-English reading of where price sits against them, how to trade it and what would prove it wrong.
Best markets and timeframes
Best on 1 hour to daily charts of trending markets such as gold, US30 and NAS100.
Common mistakes
- Drawing the fan on a sideways move with no clear swing.
- Expecting exact touches; treat each line as a zone.
- Forgetting that the lines slope, so the level changes every candle.
Works well with
Questions traders ask
What is a Fibonacci fan?
It is a set of sloping lines drawn from the start of a move through Fibonacci levels of that move. The lines act as diagonal support and resistance.
What is the difference between a Fibonacci fan and retracement?
Retracement lines are flat price levels. Fan lines slope, so they include time as well as price.
Which Fibonacci fan line is most important?
The 38.2%, 50% and 61.8% lines are watched most. A break of the 61.8% line often means a deeper correction.
Does WickSpeak draw Fibonacci time zones?
No. This tool draws the Fibonacci fan lines from the last swing.