Fibonacci Retracement Calculator

Fibonacci retracement levels mark potential support and resistance zones during a pullback within a larger trend, based on ratios derived from the Fibonacci sequence. Traders use them to identify likely areas where a retracement might pause or reverse before the original trend resumes, informing entry points, stop-loss placement, and profit targets.

38.2% and 61.8% come directly from the Fibonacci sequence's mathematical ratios, while 50% isn't technically a Fibonacci ratio but is included because retracements to the midpoint of a move are extremely common in practice. The 61.8% level specifically is often called the golden ratio and is watched particularly closely, a retracement that holds above it is generally seen as a stronger continuation signal than one that breaks through it.

Use the most recent, clearly defined significant high and low that represent the move you're analysing, typically the start and end of a clean trending swing on your chosen timeframe. Choosing an unclear or overly short swing produces retracement levels that don't correspond to anything traders are actually watching, reducing their usefulness.

The mechanism is mirrored: in an uptrend, you measure from the swing low to the swing high, and retracements are measured back down from the high. In a downtrend, you measure from the swing high to the swing low, and retracements are measured back up from the low. This calculator handles both directions, select the one matching your current chart.

Extension levels project potential price targets beyond the original swing high or low, used once price has broken past the prior extreme rather than retracing. They're commonly used to set profit targets on a continuation move, based on the idea that price often travels a proportionally similar distance beyond the breakout point as it did during the original swing.

Most experienced traders treat Fibonacci levels as one input among several rather than a standalone signal, since a retracement level with nothing else confirming it (like a moving average, a prior support/resistance zone, or a candlestick reversal pattern) is a weaker signal than a level with multiple factors aligning at the same price.

Yes, retracement levels drawn on a higher timeframe (daily or weekly) generally carry more weight than the same levels drawn on a very short timeframe (1-minute or 5-minute charts), since more market participants are watching the higher timeframe levels, which increases the likelihood of genuine reactions at those prices.

The 38.2%, 50%, and 61.8% retracement levels are the most commonly watched, with 61.8% often considered particularly significant as a potential reversal zone in a still-intact broader trend.

Not technically, 50% doesn't derive from the Fibonacci sequence itself, but it's included by near-universal convention because psychologically significant round retracement levels tend to attract trader attention regardless of their mathematical origin.

Their reliability tends to vary, they're generally considered more meaningful within clearly trending markets with an identifiable swing high and low, and less reliable during genuinely choppy, directionless conditions.

Most experienced traders combine Fibonacci levels with other confirmation, like support and resistance, candlestick patterns, or volume, rather than trading a retracement level purely on its own without additional supporting evidence.

Select a clear, significant recent price swing relevant to the timeframe you're trading, using an ambiguous or overly minor swing tends to produce retracement levels that carry less genuine market significance.