Fibonacci Calculator
Calculate key Fibonacci retracement and extension levels to find potential support and resistance.
Price Data
Results
Retracements
Extensions
How to Use Fibonacci Retracements and Extensions
What Are Fibonacci Retracements?
Fibonacci retracements are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The most common levels are 23.6%, 38.2%, 50%, 61.8%, and 76.4%. Although 50% is not a true Fibonacci number, it is heavily used by traders.
How to Calculate Fibonacci Levels
To calculate these levels, you first need to identify a major price move (a swing). In an uptrend, you measure from the swing low to the swing high. The retracement levels are calculated by subtracting a percentage of the total move from the high. In a downtrend, you measure from the swing high to the swing low, and add a percentage of the total move to the low.
What Are Fibonacci Extensions?
While retracements help you find entry points on a pullback, Fibonacci extensions help you determine where a price might go next. Traders use extensions to establish profit targets. Common extension levels include 138.2%, 161.8%, and 261.8%. Once the price resumes its original trend and breaks past the swing high (or low), extensions predict the next areas of resistance (or support).
Frequently Asked Questions
Which Fibonacci level is the strongest?
The 61.8% level is known as the 'golden ratio' and is widely considered the strongest retracement level. However, many traders also place significant weight on the 50% level, as markets naturally tend to retrace half of a major move before continuing.
Can I use this for crypto or stocks?
Yes! The Fibonacci sequence reflects natural market psychology (fear and greed) and applies to any liquid market, including forex, cryptocurrencies, indices, and individual stocks.