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General TradingF
Fibonacci Spiral
A Fibonacci Spiral is a geometric pattern derived from the Fibonacci sequence where each quarter-turn of the spiral represents a Fibonacci ratio. In trading, it is used as an overlay on charts to identify natural areas where price may react or reverse.
Example
“The technical analyst placed a Fibonacci Spiral on the weekly chart of gold and found that major turning points in price consistently aligned with the spiral's intersections, adding confluence to their reversal thesis.”