the hAnDbook of teChnICAl AnAlysIsCombining Ichimoku and Fibonacci retracements
Employing Fibonacci ratio analysis on the Ichimoku barrier overlays is particularly
effective in identifying potential areas of support and resistance. In Figure 16.18,
we observe the Chikou Span finding resistance at price. We also see a confluence
of bearish signals at Point 1 where price was rejected after testing the cloud, which
was incidentally at a 38.2 percent Fibonacci retracement level, measured over
the observed price range AB. Subsequently, at Point 2 we see price finding sup-
port at the cloud, coinciding perfectly with the 50 percent retracement level. See
Figure 16.18.FIgure 16.18 Fibonacci‐Cloud Confluences on the Daily Natural Gas Chart.
Source: MetaTrader 4FIgure 16.17 Thick Clouds at Support and Resistance on the Daily Light Crude Oil
(Spot) Chart.
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