Technical AnalysisIntermediate

Fibonacci Arcs

Fibonacci arcs are half circles drawn from the end of a price move, with radii of 38.2%, 50% and 61.8% of the move's base line. They mark curved support or resistance zones that combine price and time.

Fibonacci arcs take the familiar retracement ratios and bend them into curves. Instead of a level that stays fixed forever, an arc's support or resistance changes as time passes after the swing. It is a niche tool, but some traders like how it captures both how far and how long a pullback runs. This entry explains how arcs are drawn, read and used.

Category
Technical Analysis
Reading time
3 min
Also called
Fibonacci arc, Fib arcs
Updated

Fibonacci arcs in plain words

Fibonacci arcs are half circles that extend from a trend line, set at 38.2%, 50% and 61.8%.1

After an advance, they are measured along a base line from trough to peak and mark possible support or reversal zones on the pullback.1

The same ratios underlie ordinary Fibonacci retracement levels, which traders use to find potential reversal points.2

How to draw Fibonacci arcs, step by step

  1. Choose the move

    A significant trough-to-peak swing. See Swing High and Swing Low.

  2. Draw the base line

    From the trough to the peak.

  3. Set the radii

    38.2%, 50% and 61.8% of the base line.

  4. Draw the arcs

    Centred on the peak, curving down and forward.

  5. Watch the pullback

    Reactions at arcs show support. See Support and Resistance.

  6. Mirror after declines

    Arcs then mark resistance on bounces.

Worked examples

Example 1 — The arc levels

Arcs set

An advance runs from $80 to $120.

Example 1 — The arc levels — calculation
Move$40
38.2% arc (at peak date)$120 − $15.28 = $104.72
61.8% arc (at peak date)$120 − $24.72 = $95.28

The arcs' radii are 0.382, 0.50 and 0.618 of the base line.1

Example 2 — Support on an arc

+$12

The pullback reaches the 50% arc and the stock rebounds from $103 to $115.

Example 2 — Support on an arc — calculation
Bounce$103
Rebound to$115
Gain+$12

Arcs mark potential support or reversal zones as prices pull back after an advance.1

Example 3 — Resistance after a decline

Bounce fails

A stock falls from $60 to $40, then bounces into the 61.8% arc and turns down.

Example 3 — Resistance after a decline — calculation
Decline$20
Bounce stalls at arcResistance

After a decline, arcs anticipate resistance or reversal zones for the counter-trend bounce.1

Fibonacci arcs vs fans vs time zones

AspectShapeAdds
ArcsHalf circlesPrice and time together
FansDiagonal linesSloping support. See Fibonacci Fan
Time zonesVertical linesTiming only. See Fibonacci Time Zones
RetracementsHorizontal linesPrice only

How traders use Fibonacci arcs

  • Pullback support

    Entering at a curved level. See Pullback.

  • Bounce resistance

    Selling rallies in downtrends.

  • Timing reactions

    When price meets an arc, not just where.

  • Confluence

    Combine with horizontal levels. See Fibonacci Retracement and Extension.

Advantages and disadvantages

Advantages

  • Combines price and time.
  • Uses familiar Fibonacci ratios.
  • Levels evolve as time passes.

Disadvantages

  • Shape depends on chart scaling.
  • Subjective anchor points.
  • Less widely watched than retracements.

Going deeper

Read as far as you need. Each level builds on the one before it.

Rounded ratios

Beginner

The first and third arcs use 0.382 and 0.618, often rounded to 38% and 62%, and the middle arc sits at 50%.1

Why scale matters

Intermediate

A circle on a chart depends on how many pixels represent a dollar and a day, so arcs change with zoom and scale settings. See Linear and Logarithmic Scale.

Part of a toolkit

Advanced

Retracement levels are only potential reversal points; arcs add timing but still need confirmation from price.2

Common mistakes

  1. Inconsistent chart scaling

    Arcs drift when zoom changes.

  2. Minor swings as anchors

    Use significant moves.

  3. Expecting exact touches

    Arcs are zones.

  4. Ignoring confirmation

    Wait for price to react.

Check your understanding

Test yourself before moving on. Each answer comes with an explanation.

Q1A move runs from $200 to $300. What is the 61.8% arc radius in price terms?
Q2What do Fibonacci arcs combine?

Key points to remember

  1. Fibonacci arcs are half circles from a swing's end point.
  2. Radii are 38.2%, 50% and 61.8% of the base line.
  3. They mark support after advances and resistance after declines.
  4. They combine price and time.
  5. Chart scaling changes their shape.

Frequently asked questions

Are Fibonacci arcs popular?

Less than retracements, but some technical traders use them for timing.

Which ratios do arcs use?

38.2%, 50% and 61.8%.

Do arcs work in all markets?

They can be applied anywhere, though their usefulness is debated.

Further learning

Sources

This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.

  1. StockCharts ChartSchool. Fibonacci Arcs (opens in a new tab) Checked .
  2. StockCharts ChartSchool. Fibonacci Retracements (opens in a new tab) Checked .

Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.