What Is Caro Fan
Caro fan is a term used in finance and technical analysis to describe a fan-like set of lines that help traders visualize price movement and trend direction. These lines are drawn from a key price point across a chart to highlight support, resistance, and potential reversal zones.
How Caro Fan Works
Traders create a caro fan by selecting a significant high or low and then drawing lines at fixed angles, such as 1x, 2x, and 1/2x. Each line represents a different rate of price change, making it easier to see whether momentum is accelerating or slowing. The tool is often combined with other indicators to confirm signals.
Why Caro Fan Matters in Finance
Using a caro fan can help investors identify trend strength, potential entry and exit points, and key price targets. It is especially useful for spotting areas where price may stall or reverse, which supports more structured risk management. For more details on fan-based analysis, see Investopedia.
