# Fibonacci Arc

### Description

Fibonacci Arcs are half circles that extend out from a trend line drawn between two extreme points. Four arcs are then drawn, measured from the second extreme point, so they intersect the trend line at the Fibonacci levels of 23.6%, 38.2%, 50.0%, and 61.8%.These arcs mark potential support and resistance areas as prices retrace a portion of their move after a decline or an advance.

### How this indicator works

Anticipate support / resistance as price approaches Fibonacci Arcs.

### Calculation

• Base Line: A line from point A to point B
• First Arc: Radius = 23.6% of base line
• Second Arc: Radius = 38.2% of base line
• Third Arc: Radius = 50% of base line
• Fourth Arc: = 61.8% of base line.

Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.

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