Fibonacci Clusters
What are Fibonacci clusters? What are Fibonacci clusters used for?
Fibonacci clusters are a technical analysis tool used to determine the level of support or resistance of various price levels for a stock. When charted, Fibonacci clusters are found on the side of a price chart as horizontal bars.
The tool is named after the Fibonacci numbers, a unique series of numbers created by beginning with 0 and 1 and then creating each subsequent number by finding the sum of the previous two numbers within the sequence. Thus the sequence begins as 0, 1, 1, 2, 3, 5, 8, 13 etc.