Using the %R Arc Tool

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The %R Arc tool represents a Fibonacci expansion of the selected range. This drawing object will draw semi circles on the screen at different intervals between the extreme points of the underlying trend line. The trend line is drawn from a price trough to an intermediate price peak. The length of the underlying trend line and the percentages you set for the drawing object determines the radius of each semi-circle.

The two-thirds (.6667), and one-third (.3333) lines are most commonly used. Any reaction in price should hold at the two-thirds arc. If prices break this arc, they should fall to the one-third arc, before bouncing back up.

The Fibonacci percentages of 23.8% (.238), 38.2% (.383), 50% (.500), 61.8% (.618), 100% (1.00), 161.8% (1.618), 261.8% (2.618), and 423.6% (4.236) can also be entered.