Fibonacci Extension, available on most trading platform, is a derivative of Fibonacci retracement and is price levels created by tracking a price’s primary move and its retracement. The resulting price levels that are drawn on the chart represent potential support and resistance in the subsequent movement. In this way, it can help establish profit targets on trend trades or alert a trader to where potential trend reversal areas could develop.
Also known as the Golden Ratio, the Fibonacci sequence was introduced by Leonardo Pisano Bogollo (1170-1250), an Italian mathematician from Pisa, and can be listed as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610……
“Speed resistance lines” are an analytical tool in technical analysis that is used for determining potential areas of support and resistance. Developed by Edson Gould, a prominent market technician who was famous for his market calls in the 60s and 70s, this tool are trendlines based on Fibonacci retracement points (38.2%, 50.0%, 61.8%, etc.).
Fibonacci Arcs are half circles that extend downward from the top of a base line drawn between the session high and low. These arcs intersect the base line at the 23.6%, 38.2%, 50.0%, and 61.8% Fibonacci retracement levels and represent areas of potential support and resistance.
“Fibonacci Time Zones”, present as vertical lines based on the Fibonacci Sequence, is a technical indicator that identifies periods in which the price of an asset will experience a significant amount of movement. This technique contains a series of vertical lines that correspond to the sequence of numbers known as Fibonacci numbers (1,2,3,5,8,13,21,34,55, etc.), where each successive number is the sum of the two previous numbers.