the hAnDbook of teChnICAL AnALySISfibonacci fan Lines
Fibonacci Fan Lines are created in a slightly different manner as compared to
standard fan lines. Here is how to construct a bearish Fibonacci fan line:
■ (^) Identify a significant Fibonacci retracement range.
■ (^) Draw a vertical line from the peak of the retracement range to the trough’s
price level.
■ (^) Divide the vertical line into 38.2, 50, and 61.8 percent levels.
■ (^) Project three lines from the trough, intercepting the three retracement levels
located on the vertical line.
See Figure 5.51.
speed Lines
Edson Gould’s speed lines also track the progress of a trend as it attempts
to bottom or top. Speed lines are created in exactly the same way Fibonac-
ci fan lines except that the retracement ratios are one‐third and two‐thirds.
See Figure 5.52.
figure 5.50 Decelerating and Accelerating Fan Lines.
figure 5.51 Bearish Fibonacci Fan Lines.