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DEFINITION of 'Fibonacci Arc'

A charting technique consisting of three curved lines that are drawn for the purpose of anticipating key support and resistance levels, and areas of ranging.

Fibonacci Arc

BREAKING DOWN 'Fibonacci Arc'

Fibonacci arcs are created by first drawing an invisible trendline between two points (usually the high and low in a given period), and then by drawing three curves that intersect this trendline at the key Fibonacci levels of 38.2%, 50% and 61.8%. Transaction decisions are made when the price of the asset crosses through these key levels.

  1. Fibonacci Fan

    A charting technique consisting of three diagonal lines that ...
  2. Fibonacci Channel

    A variation of the Fibonacci retracement pattern in which the ...
  3. Fibonacci Extensions

    Levels used in Fibonacci retracement to forecast areas of support ...
  4. Fibonacci Retracement

    A term used in technical analysis that refers to areas of support ...
  5. Fibonacci Numbers/Lines

    The Fibonacci numbers and lines are technical indicators using ...
  6. Fibonacci Clusters

    A tool used in technical analysis that combines various numbers ...
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