The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

Fibonacci Number and Ratio Analysis

C and all earlier tests of the fan lines are irrelevant and may well be regarded as

coincidental.

In Figure 10.68, we see price finding support and resistance at the declining

fan lines numerous times on the daily Natural Gas chart.

10.17.1 invalidating Fibonacci Fan Lines

There are two scenarios where fan lines should be redrawn. The first scenario

whereby declining fan lines should be redrawn occurs when price exceeds the peak

from which they were plotted. Similarly, rising fan lines should be redrawn when

price exceeds the trough from which they were plotted. Referring to Figure 10.67

Figure 10.66 Constructing Declining Fibonacci Fan Lines.

Figure 10.67 Declining Fibonacci Fan Lines on Google Inc.

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