Description
Fibonacci spiral is created by drawing circular arcs connecting the opposit corners of squares in the Fibonacci tiling, thus the radius grows proportionally to Fibonacci ratio. The main principle of using the Fibonacci spiral in technical analysis is setting the first radius as the distance between two significant extremum points of chart. If this distance is chosen properly, intersections of the spiral and the price plot are said to mark important price and time targets.
In order to add the Fibonacci spiral to chart, choose it from the Active Tool menu. Specify begin and end points of the trendline (this is going to set the first radius, so consider using significant peak and trough for these purpose); the spiral will develop automatically.
Properties
Appearance:
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Rotation. Defines whether the Fibonacci spiral is plotted clockwise or counter-clockwise.
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Coefficient. Defines the coefficient with which the radius grows.
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Visible. Set this property to "No" in order to hide the Fibonacci spiral.
Turns:
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Turns. Defines the number of turns in the spiral.
Begin point:
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Value. Defines the price value corresponding to the begin point of the trendline.
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Date/Time. Defines the time scale value corresponding to the begin point of the trendline.
End point:
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Value. Defines the price value corresponding to the end point of the trendline.
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Date/Time. Defines the time scale value corresponding to the end point of the trendline.