The following examples were created using TCNet® and StockCharts.com® as the background charting programs.
The first example shows the use of some of the Fibonacci Studies (see Fibonacci Price Retracements, Fibonacci Arcs, Fibonacci Fans and Fibonacci Time Extensions). While this example looks a bit crowded at first, it shows how two sets of Fibonacci studies can complement each other. Note how the price follows the yellow .618 fan line in mid 2002 while the .5 magenta fan line follows along just below the prices. Note too how price plunges where the .5 magenta fan line crosses the .5 yellow arc and the .5 yellow time extension line. The .5 yellow and .382 Retracement levels also run through this area. Price plunges again when the .618 magenta fan line crosses the .382 magenta arc, the .5 magenta Retracement line and the .618 time extension line. Note also how price holds briefly at the .382 magenta arc, which is supported by the .618 yellow arc. Note that if we used a slightly later pivot as the start of the magenta move, the magenta and yellow arcs would have reinforced each other more strongly (you can confirm this by using ChartOverlay on this image to perform the alternate analysis).
The second example was contributed by kmack, a TCNet® user. It shows how you might use Action/Reaction Lines (the blue dotted lines perpendicular to the solid green lines) with an Andrews' Pitchfork (the solid green lines). Note how price reacts to or follows the Action/Reaction Lines. Note also how price reacts when it encounters an intersection and how it follows the green Median lines.
The third example shows two overlapping Pitchforks. The solid green Pitchfork is a normal one. The dotted green Pitchfork is obtained by moving the initial pivot down half the vertical distance between the first two pivots. Doing this creates additional lines and intersections that appear to mark significant changes in the behavior of Price. (This study was actually first drawn two bars earlier; it had to be redrawn for editorial reasons.)
The fourth example was contributed by Don McCullar from Denton, Texas, who used StockCharts.com®. It illustrates the use of Fibonacci Time Cycles (magenta) in conjunction with a Fibonacci Retracement (blue) and Fibonacci Time Extension (blue). Note how the Fibonacci Time Cycles often coincide with reversals in the price chart. Note, too, how the 21, 34 and 55 lines coincide with the 0.382, 0.618 and 1 lines.
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