Fibonacci Retracement Fan
The Fibonacci retracement sequence is one of the most widely used tools in technical analysis. There are different visualization tools, the Fibonacci Retracement Fan being one of them. Technical analysts use the Fibonacci retracement sequence in order to identify support, resistance and reversal zones. In conjunction with other elements of technical analysis, they can offer analysts entry as well as exit levels into trades. Each time price action approaches one of the key levels, a closer analysis is warranted. The most important levels to monitor is the start and end point of the sequence (0 and 100) as well as the 38.2, 50.0 and 61.8 levels.
The Fibonacci retracement sequence can be found all through nature and the Italian mathematician Leonardo Pisano Bogollo (1170 - 1250) is credited with making the sequence a mainstream mathematical formula.