Many traders use Fibonacci ratios to predict the levels of support and resistance into the future of a chart and also to analyze how fast a chart is rising or falling. Fibonacci Fans are a charting technique based on using Fibonacci ratios, which are applied on the time and price of a stock to determine a trend. A typical Fibonacci fan chart consist of 3 lines, though if necessary, a trader can increase the number of lines in the chart. Like Fibonacci arcs, the Fans system can be created for both short-term and long-term predictions of a trend.

Some trading software systems have tools to allow traders to plot Fibonacci fans in price charts. First a trend line is created connecting the two most extreme points. These two extreme points are the highest point and the lowest point in a given time period. Then, an invisible line is plotted vertically from the second point. After that, three lines are drawn from the first extreme point intersecting the invisible vertical line at important ratios. When used with the Fibonacci arcs, it can provide the best results. Traders find using these ratios helpful when trying to predict the future direction of a specific symbol or trading instrument, and it has been proven very beneficial by many traders.