Fibonacci Fan Tool
In comparison to other Fibonacci charting tools, the Fibonacci Fan Tool is one of the easier Fibonacci charting tools to use and place on a stock chart. While I use the other Fibonacci charting tools (Fibonacci Extension and Retracement Tools) for multi-purposes, I typically use the Fibonacci Fan Tool for one purpose only:
- The Fibonacci Fan Tool assists me with purchasing shares by providing zones or "quadrants" that can be used as part of a scale-in share purchase strategy.
The Fibonacci Fan Tool is a charting tool that can help you scale into a position on a hot, upwards trending stock chart when placed on a short-term chart.
When a Fibonacci Fan Tool is used on a longer-term chart, like a weekly or monthly candlestick chart, it provides investors with value opportunities by identifying value buying zones (quadrants)........If you want to continue learning about things like:
- the components of a Fibonacci Fan Tool
- how to use the tool to monitor pullbacks and calculate purchase areas
- advanced techniques, like how to trade using a Fibonacci Fan Tool
- tips and warnings when using this tool
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