Fibonacci fans are a combination of trendlines plotted from a single point and distant from each other based on Fibonacci ratios.
Fibonacci fans share the main idea with Fibonacci retracements: using Fibonacci ratios to predict future support/resistance levels.
On an uptrend period, it is suggested that the main trendline be plotted from the bottom to top so that retracement lines are placed below it; these lines might predict potential support levels.
Conversely, on a downtrend section, the fan is plotted from the top to bottom, the retracement lines appear above the main trendline, serving as potential resistance levels.
Rising Fibonacci Fan
The three Fibonacci fans project into the future with slopes at 38.2, 50, and 61.8% (additional levels are also available).