Saturday, September 19, 2009

Trend Channels and Fibonacci Fans

Just trying to keep things simple and hopefully look at Fibonacci retracements in a different light by using the Fibonacci fan.

I like how the fan trendlines highlight support and resistance. I have indicated this with the green circles.

It will be interesting to see as price is nearing 1100 if the 61.8% trendline will act as resistance. It appears highly probable given that the trendline intersects with the middle trend channel of the A-B-C structure right at 1090.

If one were to consider the upper trend channel of the A-B-C structure (red) and the (W)-(X)-(Y) structure the range would be approximately 1072-1124.


Post a Comment