Trends/Fibonacci and harmonic patterns

Fibonacci arcs

Curved lines around a swing high at fractions of the swing's length, mixing price and time.

Fibonacci and harmonic patternsBest on 6M, 1Y, 3YAlso called Fib arcs
Fibonacci arcs diagramIllustration of the Fibonacci arcs shape. It is a sketch, not real price data.Swing lowSwing high
Illustration of the Fibonacci arcs shape. It is a sketch, not real price data.

What it shows

Fibonacci arcs are half-circles centered on the end of a swing. Their radii are 38.2%, 50% and 61.8% of the straight-line length of the swing.

Because arcs mix price and time, their look depends on the chart's scale. Zooming changes the shape, which is a reason many analysts avoid them.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. Find a major swing: a swing low and a swing high.
  2. Measure the straight distance between them on the chart.
  3. Draw arcs centered on the swing high with radii of 38.2%, 50% and 61.8% of that distance.
  4. Mark points where price touched an arc.

Starting values: Radii 38.2, 50, 61.8%; Centered on end of swing. These are proposed and will be tuned on real price data before launch.

How to read it

  • The three cyan arcs are the levels.
  • Price crossing an arc means it has moved that far in price and time.
  • The center is the swing high (red dot).

Status labels you may see

LabelWhat it means
Inside the first arcPrice is within 38.2% of the swing length.
Between arcsBetween two arcs.
Outside all arcsBeyond the 61.8% arc.

What cancels it

A close beyond the swing low.

What traders check next

  • Whether the shape depends on the chart scale.
  • Whether price turned near an arc.
  • Whether horizontal Fibonacci levels agree.

Limits

  • Arc shape changes with the chart scale.
  • Rarely used in research.
  • Easy to find a touch by chance.

Try it in forecastviz

  • Open any ticker and choose Fibonacci and harmonic patterns → Fibonacci arcs in the left menu.
  • Switch between 6M, 1Y, 3Y to see how the picture changes.
  • Compare with Fibonacci retracement and Fibonacci time zones on the same chart.

Questions

Why are arcs scale dependent?

A circle on a chart is stretched when the axes are rescaled.

Why include them?

They are available on many platforms and people ask for them.

Related trends

Further reading

  • Boroden, Fibonacci Trading
  • Carney, Harmonic Trading
  • Murphy, Technical Analysis of the Financial Markets

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.