To draw a Fibonacci Fan, follow these steps:

1. Identify the Trend: Determine the trend by marking the lowest and highest points on the price chart.
2. Select Fibonacci Tool: Use charting software with Fibonacci tools. Select "Fibonacci Fan" from the tools menu.
3. Draw the Fan: Click at the starting point of the trend (low point) and drag to the end point (high point). The software will automatically generate the fan lines.
4. Interpret the Lines: The fan lines represent potential support and resistance levels. These are drawn at key Fibonacci retracement levels: 38.2%, 50%, and 61.8%.
5. Analyze: Use the fan lines to identify potential price reversal points and make informed trading decisions.

To draw a Fibonacci Fan, start by identifying a clear price trend on your chart. In an uptrend, select the most recent significant low and drag the Fibonacci Fan tool to the next major high. In a downtrend, do the opposite, from the high to the low. Once placed, the tool automatically plots diagonal trend lines based on key Fibonacci ratios, usually 38.2 percent, 50 percent, and 61.8 percent. These lines act as dynamic support and resistance levels. Traders watch how price reacts around these angles to judge potential pullbacks, continuations, or reversals. The Fibonacci Fan works best when combined with other tools like trendlines or price action for confirmation.