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General TradingF
Fibonacci Arcs
Fibonacci Arcs are a technical analysis tool that creates curved lines at Fibonacci levels (38.2%, 50%, 61.8%) between two extreme points on a chart. They are used to identify potential support and resistance areas that account for the passage of time.
Example
“After connecting a major swing low to a swing high, the trader plotted Fibonacci Arcs and watched price react precisely at the 61.8% arc, providing a dynamic support level that moved with time.”