W D Gann Technical Analysis Wizard

William D. Gann (1878 to 1955) was an outstanding technical

analyst. He was born on a cotton ranch on June 6, 1878, in Lufkin, Texas. Gann claimed
to have made a world’s record in leverage and accuracy more than once, that he had
developed trading strategies for speculators, and that he could predict market moves to
the exact price level. Consider using this space to introduce your page. Just click to add
your own content. He displayed a strong aptitude in mathematics during his early years,
completed a high-school education, and started trading in 1902 at the age of 24. By his
own admission, Gann’s early trading was based on “hope, fear and greed,” all of which he
later realized were not compatible with a successful trading strategy. After losing
significant sum of money, Gann began to observe that markets followed mathematical
laws and certain time cycles. He was particularly interested in the connection between
price and time, a relationship he referred to as the “square” of price and time. He began
studying this interaction diligently, even traveling to England, India, and Egypt to research
mathematical theory and historical prices.

In developing his theories, Gann was undoubtedly one of the most industrious technical
analysts. He made thousands of charts displaying daily, weekly, monthly, and yearly prices
for a wide variety of stocks and commodities. He was a avid researcher, occasionally
charting a price back hundreds of years. At a time when most market analysis was strictly
fundamental, Gann’s revolutionary theories relied on natural laws of mathematics, time
cycles, and his unshakable conviction that past market activity predicted future activity .

W D Gann's Law Of Vibration

Gann in his Stock Market Courses have explicitly proved that all stocks and commodities
vibrate. He named it as " W D Gann's Law Of Vibration " in that he says that if we can
calculate the rate of vibration then its is possible to predict the future price moment of the
asset. The principle of Gann Angle Theory is based on this concept only.

Gann Price Vs Time Square & Gann Angle

The squaring of price and time was one of the most important and valuable discoveries
that Gann ever made. In his trading course he stated “ if you stick strictly to the rule, and
always watch when price is squared by time, or when time and price come together, you
will be able to forecast the important changes in trend with greater accuracy”.
 The squaring of
price with time means an equal number of points up or down, balancing an equal number
of time periods- either days, weeks, or months. Gann suggested traders square the range,
low prices, and high prices.

Gann has plotted the relationship between price and time. He explicitly stated that at the
point of intersection between the price and time trend line there is a valid reason for a
expectation of change in trend. Gann has given 11 different trend lines which will guide
the trader in taking timely wise decision. These trend lines are drawn based on the
geometrical angle proportion in X and Y axis.
The most important trend line 1X1 (read it “one by one” ) Gann angle. This is a straight
line drawn in the price-time chart which makes and angle 45° with the X-Axis. i.e. This is
the trend line drawn assuming 1 unit of price change with respect to 1 unit of time change
in a semi log scale. Similarly 2X1 ( two by one) trend line means line is drawn assuming
the 2 unit of price rise or fall happens in 1 unit of time. This trend line makes geometrical
angle of 63.75° with X Axis when drawn from a lower price point and projected toward
higher price points. Similarly this trend line will make 26.25° with respect respect to X-
Axis when it is drawn from a higher price point and projected towards the lower price
point.

Gann Wheel
Gann was always emphasizing in his training courses that a trader should keep to the rules
and watch for when the price is squared by time or when price and time come together
and the trader will be able to forecast the major trend changes with unbelievable accuracy,
especially when using the Gann wheel or the square of nine as illustrated below.

The Gann wheel is recognized by most

people as the Square of Nine or a Square Root calculator. As you can see from the
illustration it is a few rings of a Gann wheel with the number 1 at the center. You will have
to visualize a circle to understand that the number 19 is 90 degrees from the number 15
or that the number 8 is 180 degrees from the number 46.

What Gann says is that we know that the square root of 15 is 3.87 and that we add 2 to
the square root of 15 we get the number 5.87. If we square 5.87 we get 34. So if we add
2 to the square root of a number and then squaring that number, it is the same thing as
one 360 degree rotation on the Gann wheel. So if 2 represents a 360 degree rotation then
1 must represent a 180 degree rotation and 0.5 is a 90 degree rotation. It’s the 90 degree
that Gann claimed was very important in the markets. He was saying that adding and
subtracting 0.5 or exact multiples of .5 to the square root of a stock price and then
squaring the result is significant. As we know 90 degrees is also very prominent in
astrology and maybe Gann was influenced by heavenly events too.

What is unique aspect about the Square of Nine is that it completely unconcerned whether
the variables are a range of prices, one particular price, or a number of stock trading days,
for example. For the Square of Nine they are identical and totally exchangeable. For a
trader who has been brought up on charts, moving averages and oscillators the concept
of squares, circles and square roots can be a little daunting and maybe a little mystifying.

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an asset . This will help the trader in taking intraday trading calls. This is a very popular
tool used by traders across India .
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2!!!

Gann Price Vs Time Squaring - Finding

Support & Resistance
Gann says that there can be nine mathematical proofs of any point of resistance
 Angles from top and bottoms.
 Angles running horizontally i.e. the previous tops and bottoms.
 Time cycles. (vertical angles) e.g. if there are three or four days of sideways
moment after a high day and this is followed by a down day with high volume
where low is lower that the lows by sideways moment and when this coincides with
expiry of time cycle)
 Crossing of important angle originating at Zero.
 Crossing of coming together of angles from double or triple tops or bottoms.
 Crossing of double or triple tops or bottoms.
 Past resistance/support
 Volume of sales
 Squaring of time and price.

Support = (√High-Degree Factor)²

Resistance = (√Low+Degree Factor)²
 Practical Example Of Deriving Support & Resistance
- SBI on 11th Nov' 2010
On 11th November 2010 SBI between 9.15 A.M. to 9.30 A.M. made high 3238.35 at
9.16 P.M. Low 3214.10 at 9:27 P.M
We have derived the above scrip’s support and resistance using SQUARER 2012
SOFTWARE - PRICE VS TIME SQUARING TECHNIQUE

As per the above data we are advised to buy the scrip at 3223.55 or sell at 3228.873. In
that case we need to do recalculation. Here instead of calculating from high and low point
we will start calculating from mid point.

The modified calculation table is as follows.

 As per this we are advised to buy at 3235.52 for a final target of 3280.71 and sell at
3216.59 for a final target of 3172.0214.
Trade Outcome :
At 9:34 A.M we got a chance to sell at 3217 and kept a stop loss at 3235.52 as per our
above table. On achieving first target of 3214.22 we have moved our stop loss to 3216.59,
then upon crossing the second stop loss we altered the stop loss to 3214.4. After touching
the low of 3211 at 9:39 A.M scrip rebounded and hit our stop loss of 3214.4 . We got 3
points in this experiment.
Again we will wait for our next entry point. On crossing 3235.52 at 10:07 A.M we can go
for a buy with a target of 3280.71 and stop loss of 3216.59. The scrip got to 3254 at 11:27
A.M which is a 45° angle. People who are waiting for a strong conformation can enter at
this level also by keeping a stop loss of 3235.52

3!!

Squaring The High

Divide the high by the scale to get the new date of high.
Date = High / Scale
Scale Equation

Up Trend

( Main Bottom 2 – Main Bottom 1 ) / Difference In Time Between Them

Down Trend

( Main Top 1 – Main Top 2 ) / Difference In Time Between Them

 Practical Example Squaring The High - NIFTY May 10th 2006

Lets take the example of NIFTY .
NIFTY made its High on May’10th 2006 at 3754.25.
Now we are going to see using Squaring of High method on when the NITFY will hit its
next high. For that we need
 Two bottoms, NIFTY made a low of 2632.8 on June’14th 2006 and next low was at
2945 on July’21st 2006 a range of 40 days.
 Scale = (Main Bottom 2 – Main Bottom 1)/ Difference In Time Between Them

= 312.2 / 40 = 7.805.

 Squaring High = High / Scale = 3754.25 / 7.805 = 481.005

 Converting days to Year is 481 / 365 = 1.3 years
  i.e . May 10th 2006 + 1.3 Years = July 2007

 Actual outcome , Market peaked on July 23rd 2007 ( Its a 15 degree Gann Date
also )

Squaring The Low

Dividing the low by the scale to get the new date of low.

Date = Low / Scale

 Practical Example Squaring The Low - NIFTY March 9th 2009

NIFTY made its Low on March 9th 2009 @ 2573.15 .
Now we are going to see using Squaring of Low method on when the NITFY will hit its
next Low . For that we need
 Two highs , NIFTY made a high of 6301.55 on Nov'9th 2010 and next high was at
6157.6 on Jan'3rd 2011 a range of 55 days.
 Scale = (Main Top 1 – Main Top 2 )/ Difference In Time Between Them

= 143.95 / 55 = 2.61.

 Squaring Low = Low / Scale = 2573.15 / 2.61 = 985.88

 Converting days to Year is 985.88 / 365 = 2.7 years
 i.e . March 9th 2009 + 2.7 Years = October 2011
 Actual outcome , Market bottomed at 4751.3 and bounced back to 5326 on
October 5th ( Oct 8th is 15 degree Gann Date very close to oct 8th )

4!!!

W D Gann through his extensive research have found that on ceratin dates of month
market trend changes. Gann says that these days the Sun comes at 15 Degree and 90
Degree with earth. These are very significant positions , market sentements changes on
these dates.
 Listed below are the important Gann Dates. Sometimes Gann dates are exact and at
times it is a day or two ahead or behind. Remember that we are looking for price and
time to meet and become balanced. There are times when price is ahead of time and
time is ahead of price. Once we convert these degree into days you get the dates the
market makes major highs, lows, tops and bottoms.

 Gann Dates Playing In Indian Market - NIFTY 2000 to 2011

The below table gives the details on how Gann dates are playing in Indian market. You
may see that most of the major lows and highs in the market have happened in and around
these days.
5!!!

Upswing
In a downward trending market after a continuous downward trending days , there is a
indication of market trend change with two days of upward trend i.e. the pivot is broken
. The upward swing is confirmed but market trend is still downward.

Downswing

In a upward trending market after a continuous upward trending days , there is a indication
of market trend change with two days of downward trend i.e. the pivot is broken . The
downward swing is confirmed but market trend is still upward.

Uptrend

Trend change is when the previous peak is taken out. As shown in the picture below.

Downtrend

Previous lows are broken shows a clear trend change.

Uptrend – Higher High Pivot and Higher Low Pivot.

Downtrend = Lower Low Pivots + Lower Highs Pivots

Sideways = Pivots within the range of previous highs and lows

6!!!

W D Gann combined Astrology and Astronomy and he termed it as Astrononamy. He travel

to India, Egypt and England to learn various Astrological and Astronomical principles. He
studied thousands of charts of each stocks, commodities and market moments in
correlation with Astrological and Astronomical principles and made great discoveries. He
not only predicted the market outcomes but also other geo political events like end and
beginning of world war, financial melt downs etc.
Gann discovered through his years of research that when the traders personal planetary
positions are bad its better that he keep away from market. He has explained with his own
personal examples where he made 200 odd trade without any losses but suddenly he
started incurring losses. When he learned Astrology he found that during those period
when he started incurring losses Saturn was coming into his birth house that this is a very
bad period for the individual.

What Gann told was " Stocks and commodities vibrate in accordance with both their own
individual energy / vibration (i.e. internal vibration) and also in accordance with energy/
vibration transmitted through space (i.e. external vibration). “From my extensive
investigations, studies and applied tests, I find that not only do the various stocks vibrate,
but that the driving forces controlling the stocks are also in a state of vibration”.The overall
energy/ vibration of a stock or commodity is reflected in its price". “These vibratory forces
can only be known by the movements they generate on the stocks and their values in the
market”(Ticker interview) . It is thought that Gann believed the external energy/vibration
acting on a stock or commodity is subject to astrological influences (although he does not
explicitly state this in his Ticker interview).

What Gann told was " From time to time a stock or commodity will lose its sensitivity (or
receptivity) to certain influences (astrological or otherwise). As a consequence it will
become inert (i.e. its rate of vibration will fall) and its price will typically enter a
downtrend.“Stocks create their own field of action and power; power to attract and repel,
which principle explains why certain stocks at times lead the market and ‘turn dead’ at
other times”(Ticker interview).Thus, if the assumption that astrology plays an important
role in Gann’s method of forecasting markets is correct, the key technique in applying the
Law of Vibration is to accurately identify the major astrological influence driving a
particular stock or commodity. It is then necessary to identify the resultant rate of
vibration and to forecast how future astrological influences will impact this rate of
vibration.“By my method I can determine the vibration of each stock and by also taking
certain time values into consideration I can in the majority of cases tell exactly what the
stock will do under given conditions” (Ticker interview).

7!!!

Gann Astrononamy - Zodiac & Houses

In astronomy, the zodiac (Greek: ζῳδιακός, zōdiakos) is a circle of twelve 30° divisions of
celestial longitude that are centered upon the ecliptic: the apparent path of the Sun across
the celestial sphere over the course of the year. The paths of the Moon and visible planets also
remain close to the ecliptic, within the belt of the zodiac, which extends 8-9° north or south of
the ecliptic, as measured in celestial latitude. Historically, these twelve divisions are
called signs. Essentially, the zodiac is a celestial coordinate system, or more specifically
an ecliptic coordinate system, which takes the ecliptic as the origin of latitude, and the position
of the sun at vernal equinox as the origin of longitude.

Zodiac Signs & Planet Ownership

The Sun's apparent path through the zodiac coincides with our 12-month year, almost exactly.
Our calendar months do not coincide precisely with the actual celestial month. We are out of
sync by a little bit of time (hence, Leap Year). This means that the Sun moves into a new
zodiac sign approximately every month, anywhere between 19th and the 23rd of our month.
That group of days is called a cusp, meaning the span of days in which the Sun may change
sign (there is also another meaning for "cusp" in astrology). However, being born during those
days does NOT automatically mean that you have two Sun signs (a common misconception).
Birth charts are calculated using astronomical ephemerides that chart the exact time of a Sun
sign change for every year. If you were born between the 19th and 23rd of any month, you
must check an ephemeris to see exactly where the Sun was at the time of your birth.
Empedocles, a fifth century BCE Greek philosopher, identified Fire, Earth, Air, and Water as
elements. He explained the nature of the universe as an interaction of two opposing
principles called love and strife manipulating the four elements. He stated that these four
elements were all equal, of the same age, that each rules its own province, and each
possesses its own individual character. Different mixtures of these elements produced the
different natures of things. Empedocles said that those who have near equal proportions of
the four elements are more intelligent and have the most exact perceptions.
Each sign is associated to one of the classical elements (water, fire, earth and air.) Fire and
Air signs are considered positive or extrovert, masculine signs; while Water and Earth signs
are considered negative, introvert, feminine signs.

Fire signs

Earth signs
Air signs

Water signs

8!!!

Gann Astrononamy - Planetary Aspect & Market Outcome

Gann has found out that the market behaviour is in greatly influenced by planetary
moments. When certain planets come together or in certain other angular positions the
market outcome is influenced. The planetary aspect that he has considered are.

Conjunction - Planets coming together in one House ( 0 Degree )

Opposition - Planets coming opposite in two House ( 180 Degree )
Opposition - Planets coming Square in two House ( 90 Degree )
Opposition - Planets coming Sextile in two House ( 60 Degree )
Opposition - Planets coming Trine in two House ( 120 Degree )
10!!!

Gann Astrononamy - Individual Birth Chart & Trading

W D Gann started trading at the age of 24 , he made 200 trades without any loss. 201st
trade onwards he started loosing money and its told that he lost his full principle. When
Gann started strudying Astrology he understood that when Saturn had moved into his
Birth House he started loosing money. As per Astro science during this period he should
have been very careful and traded with double caution. Where as Gann was ignorant and
was trading as per his old successful technique of trading with "gut feeling" and speculaive
.
Gann says that Individual Birth Chart plays a very important role in natives gains and
losses. What he says " like market every individual has ups and down in life , by observing
his past time he/she can clearly chart out the good and bad period and by analysing his/her
birth chart during corresponding period they can come to a conclusion on why a X period
was good or Y period was bad etc.

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Sectors to avoid !
Is this perfect time for you to take risk ! or stay safe !
Is your chart ideal for investing or trading etc etc !
Based On
Gann Astrononamy
For Chart Preparation email your details with NEFT** details to
wdgannastro@stocktradingfundamentals.com
Time Of Birth / Place Of Birth / Date Of Birth
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Sample Birth Chart Analysis

 Born on 30th Jan 1973 @ 9.10 AM so his birth sign will be Aquarius.
 So his birth house(1st House) will be Aquarius and Pisces - 2nd House and Capricorn
– 12thHouse.
 1st House there is no planet, but there is a 90º aspect of Saturn (Lord Of First House)
and Mars and Moon so native will take hasty financial decision not good for capital
market.
 1st House Lord is sitting in fourth house opposed by Moon & Mars , Native will have
very fluctuating mood and very erratic mind not ideal for stock market trading.
 Sun + Jupiter + Sun in 12th house is good for Investment since the long term exit
looks brighter.
 1st House sextile aspect of Venus + North Node. Good gains from media and
glamour related scrips, Gold, Silver ornaments.
 SUN + Jupiter + Mercury have 30º aspect with Birth House good with FMCG,
Banking, Capital Goods, Sports Related.
 90º aspect of MARS, MOON, SATURN avoid metal, IT, Telecom , Oil and Gas,
Nickel – if necessary do it after full research.

Transit Chart Analysis

For day trading analysis of the Transit chart is very important .

  On Jan 10th 2011
 Jupiter + Moon sitting in 2nd House in conjunction is opposing Saturn the owner of
1st House – Not good .
 Jupiter 90º with Sun, Mercury , North Node, South Node. Clearly Indicates wealth
erosion.
 First house 30º aspect of Mars – Hastiness.
 11th House Sun + Mercury + Rahu @ 90º with Jupiter + Moon and Saturn
= Money lost carelessly.
 12th House Mars sitting in Enemies house – Misery , Losses.
 Saturn 1st house lord sitting in 8th House can speculate but Sun and Jupiter is weak
position would not recommend..

11!!!

Gann says that planetary position is plays a very important role in companies progress.
Like a individuals birth chart companies birth chart need to be evaluated while trading in
a particular company stock. When over all planetary positions are bad it will impact
companies growth and in turn its stock value. For evaluating a companies planetary
positions we need to.

1. Birth Chart of the company based on the date from which stock has started trading
in stock exchange ( IPO Listing Date )

2. Evaluate the various planetary positions in birth chart and study the base qualities
of chart.

3. Take up the transit chart of the company on the day on which we decide to trade
and evaluate the planetary strength.

4. Take up the planetary cycle - primary, sub-primary, micro-primary and evaluate

the strength of the planet which is driving during that period when we decide to
trade.
Lets take some example and see
We are taking here example of SKS Microfinance Company was listed on 28th
July 2010 , Mumabi 9.15 PM based on that Natal Chart is as follows.
  Primary planet which is driving in the IPO period till 10th Jan 2012 is MARS ( 4th
and 9th House Lord sitting in Mercury’s (Enemies) house – Malefic.
 Sub primary planet which was driving in the initial period till 02.02.2011 was
Venus (3rd and 10th House Lord) sitting in birth house (Enemies House ) – Not
comfortable. From 02.02.2011 Sun took over which is the Birth Lord sitting in 12th
house so in its period will invite trouble. From 10.06.2011 Moon took over (12th
House Lord sitting in 7th ) will initiate trouble.
 Micro Primary planet which was driving in 2011 was Feb = Sun & Moon & Mars –
Bad. March = North Node owner of 7th house sitting in 5th House – Mixed. 17th
March/ 3rd April = Jupiter – Bad , 3rd April =Saturn – Bad . May = Mercury --
Good . June = South Node -- Good.
Now if we want to trade in this scrip on a particular day or a period we need to takeup
the transit chart on that day and evaluate . Here we are taking the transit chart of 16th
Nov 2011.
  Mars a general Malefic planet ( lord of 4th and 9th House) sitting in Birth house will
bring trouble to the company.
 Sun the Birth house lord is sitting with Saturn ( Natural Malefic) in enemies house
opposed by Jupiter – very Bad.
 Moon the 12th house lord sitting in House of Gains very bad sentimentally during
its cycle .
 Venus and Mercury having square relation with Mars again very bad and Mars is in
square to North and south Node will lead in speculation.
 The planetray position clearly says that the prospects wont be good for company in
this period and its better to keep away from investing.

Lets take another example of Reliance Power , IPO Listing date 11th Feb 2008,
Mumbai , 10.00 AM.

 Company was born under PICES sign Jupiter being the birth lord sitting in 10th
house opposed by Mars – Speculative.
 Saturn is in the 6th house and is sitting in enemies house with South Node very
bad.
 Sun 6th house lord sitting in 11th House, house of gains not auspicious. Especially
during its cycle it will be bad
 North node placed in 12th house during its cycle will create issues.
If we want to trade for 2012-2013 period we need to take up the transit chart and
planetary cycle for that period. Lets take for a period of 30.03.2012.
  Sun 6th house lord ( Mixed position ) sitting in birth house and 30º relation with
Jupiter and 60 º Venus good.
 Saturn (Exalted) opposing Jupiter will create volatility.
 Jupiter in second house Sun in the Birth house is very auspicious for stocks to do
well.
 Mars aspecting (8th Aspect ) the Birth House is again showing volatility.
 Overall a volatile position with positive bias.

The planetary cycles of RPOWRE for 2012-2013 are

  Primary planet which is driving in this period is Mercury – 4th and 7th house lord
sitting in 11th House house of gains good.
 From 8th April 2012 to 11th Sep 2013 Moon is Sub-Primary planet ( 5th house lord
sitting in Birth House ) good.
 Micro-primary planet the Best period to get in the stock would be during June/Sep
period when North Node (12th House lord sitting in 12th ) is driving there would
be a correction you can enter and exit during Mercury cycle of Feb/April 2014.

12!!!

For trading in stocks and Index we need to take-up the day to day planetary positions and
evaluate. We need to take-up the chart of that day at the market opening and delineate.
If we know the exact date when the Index has started trading we can make more accurate
predictions based on planetary cycle moment also.
Lets take-up BSE SENSEX birth chart and analysis.
Lets take a period of Jan 2008 to March 2009 and analysis the planetary cycle and transit
chart of BSE Sensex.

 As per planetary cycle shown above in the period 2008-2009 North

Node (Malefic) is driving Primary, Sub-Primary and Micro-primary planetary cycle
which will be very speculative and big moves in negative direction .

 From March 2009 onward Jupiter has taken over Micro-Primary planetary cycle
market will show improvement. July 2009 onward Saturn the birth house lord has
taken over will bring in gains for market.
  On 20th Dec Saturn the birth house lord is sitting in enemies house and is opposing
birth house - very bad position .
 Mercury sitting with its big enemy Mars very speculative and volatile.
 Jupiter and Venus sitting in 12th house along with North Node not auspicious.
Especially since North Node cycle is continuing.

 Sun , Mars , Mercury in square relationship Moon is again very bad sentimentally.

 In this situation its better that we keep away.

13!!!

Historical evidence states that this pattern was first discovered by ancient Indian saint “
Pingalacharya” in 200 BC. He passed this knowledge verbally to his disciples. The
clearest exposition of the series arises in the work of Virahanka (c. 700AD) . This was
picked by Arabs and published in Arabic.
In the West, the Fibonacci sequence first appears in the book Liber
Abaci (1202)by Leonardo of Pisa, known as Fibonacci.This sequence got its name from
thisItalian Mathematician.

The first 21 Fibonacci numbers Fn for n = 0, 1, 2, ..., 20 are:

F0 F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 F13 F14 F15 F16 F17 F18 F19 F20

0 1 1 2 3 5 8 13 21 34 55 89 144 233 377 610 987 1597 2584 4181 6765

The sum of two consecutive numbers equals the next number. The ratio of any number
to its next highest number approaches 0.618. The ration of alternating numbers
approaches 0.382. Also , 1-0.618 = 0.382. The midpoint of 0.382 and 0.618 is 0.50.
This is why 0.382, 0.50 and 0.618 are used.

Fibonacci Retracements
In technical analysis, Fibonacci retracements approximate support and resistance (and
potential turning points) following a trend. Calculate the distance from the low to the
high of the trend and calculate 38.2%, 50%, and 61.8% of the distance of the trend.
Subtract those values from the top of the trend. Those are the potential reversal points.
Charting packages perform the calculations for you - all you have to do is connect the
low of the trend with the high of the trend using the Fibonacci retracement tool.
Fibonacci Arc
Following an uptrend, Fibonacci arcs use a line that connects the low and high of the
trend - but the line is drawn from high to low (not low to high as in retracements). Three
curves that intersect the trendline (drawn from high to low) at the retracement levels of
38.2%, 50% and 61.8% are the Fibonacci arcs. The arcs are also estimations for
support.
Fibonacci Fan
Fibonacci fans are composed of diagonal lines. After the high and low of the chart is
located, an invisible vertical line is drawn though the rightmost point. This invisible line is
then divided into 38.2%, 50% and 61.8%, and lines are drawn from the leftmost point
through each of these points. These lines indicate areas of support and resistance.

Fibonacci Time Zone

Unlike the other Fibonacci methods, time zones are a series of vertical lines. They are
composed by dividing a chart into segments with vertical lines spaced apart in
increments that conform to the Fibonacci sequence (1, 1, 2, 3, 5, 8, 13, etc.). These
lines indicate areas in which major price movement can be expected.