Peace, mercy, and blessings of God be upon you.

Welcome, everyone, and a warm welcome to a new educational series with Al-Hashemi.

Today, we’ll explain one of the tools of technical analysis. Many traders may have seen it on a chart, but not everyone knows how to use it properly.

Today, we’re talking about the Fibonacci fan.

Imagine you have an upward-trending stock and want to know where the price might stop during a correction, and which areas it might bounce back from before continuing upward.

That’s where the Fibonacci fan comes in.

This tool draws a set of sloping lines that help us monitor potential support and resistance areas over time.