It is a technical Analysis tool that is comprised of vertical lines spaced at Fibonacci intervals: 1, 2, 3, 5, 8, 13, 21, 34, 55, etc. The tool is placed on two points on the price chart to define the time interval unit. The theory holds that significant price changes are expected at the vertical lines, that is, time intervals.
« Back to Glossary Index
« Back to Glossary Index