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Trading and Investment Terms

Fibonacci Time Zones

Fibonacci Time Zones are a series of vertical lines.

  • Fibonacci time zones are vertical lines that represent potential areas where a swing high, low, or reversal could occur.
  • Fibonacci time zones may not indicate exact reversal points. They are time-based areas to be aware of.

 

Traders use Fibonacci Time Zones to break down a certain period into smaller ones whose lengths are consecutive Fibonacci numbers.

 

The end of each smaller period might signify an important change in price.

 

Unlike the other charting techniques, Time Zones focus on the timing, rather than the price component of price movements.

 

With this technique, a unit time interval is chosen as a reference, and vertical lines are plotted at Fibonacci intervals of 1, 2, 3, 5, 8, 13, 21, 34, etc., where new support or resistance levels can be expected