Fibonacci Retracement
Calculate Fibonacci retracement and extension levels from a price swing high and low. Identify support and resistance for stocks, crypto, and forex trading.
About This Calculator
The Fibonacci Retracement Calculator helps traders and investors identify potential support and resistance levels based on the Fibonacci sequence. By entering a swing high and low price, the calculator instantly computes all key Fibonacci retracement levels (23.6%, 38.2%, 50%, 61.8%, 76.4%, 100%) and extension levels (138.2%, 161.8%) for both uptrend and downtrend markets. This tool is essential for technical analysis of stocks, forex, cryptocurrencies, and any other financial instruments.
The calculation uses the standard Fibonacci formula: for an uptrend retracement, each level is computed as High minus the product of the Fibonacci ratio and the price difference (High - Low). For downtrend retracement, the formula is Low plus the product of the ratio and the price difference. Extension levels project beyond the 100% level to indicate potential price targets. The 61.8% level based on the golden ratio (derived from dividing consecutive Fibonacci numbers) is considered the most significant retracement level.
Regional Notes
India: Fibonacci retracement is widely used in Indian stock markets (NSE, BSE) for technical analysis of equities and indices like Nifty 50 and Bank Nifty. Indian traders often combine Fibonacci levels with candlestick patterns and RSI for entry and exit signals.
US: Fibonacci retracement is a standard tool on all major US trading platforms (TradingView, Thinkorswim, MetaTrader). US traders frequently apply Fibonacci levels to S&P 500, NASDAQ, and individual NYSE/NASDAQ stocks across multiple timeframes from 1-minute to monthly charts.
UK: Fibonacci analysis is popular among UK traders for FTSE 100 and forex pairs (GBP/USD, EUR/GBP). The London session often sees price action respecting Fibonacci levels due to high trading volume and institutional activity.
Frequently Asked Questions
What is Fibonacci retracement?
Fibonacci retracement is a technical analysis tool that uses horizontal lines to indicate potential support and resistance levels based on the Fibonacci sequence. Key ratios include 23.6%, 38.2%, 50%, 61.8%, 76.4%, and 100%. Traders use these levels to predict where an asset's price may pull back or reverse during a trend.
How to calculate Fibonacci retracement levels?
For an uptrend, the retracement level = High - (ratio × (High - Low)). For a downtrend, the retracement level = Low + (ratio × (High - Low)). The same formula is used with extension ratios (138.2%, 161.8%) for extension levels. Simply enter the swing high and low prices to get all levels instantly.
What are the key Fibonacci retracement levels?
The key Fibonacci retracement levels are 23.6%, 38.2%, 50%, 61.8%, 76.4%, and 100%. The 61.8% level (golden ratio) is considered the most important. The 50% level is also widely watched even though it is not a true Fibonacci ratio.
What is the difference between retracement and extension levels?
Fibonacci retracement levels predict where price may pull back or reverse during a trend. Fibonacci extension levels project where price may move to after a retracement completes. Common extension levels are 138.2% and 161.8%, used as profit-taking targets.
Are Fibonacci retracement levels reliable for trading?
Fibonacci retracement levels are widely followed by traders and can act as self-fulfilling prophecies. However, they should be used in combination with other technical indicators like trend lines, moving averages, and volume analysis for better accuracy. No single indicator guarantees price movements.
How do traders use Fibonacci retracement in stocks and crypto?
Traders draw Fibonacci retracement from a significant price swing low to high (or high to low). They watch these levels for potential entry points, stop-loss placement, and profit targets. In crypto markets, Fibonacci levels are particularly popular due to high volatility and strong trending moves.
What is the golden ratio and how does it relate to Fibonacci?
The golden ratio (approximately 1.618) is derived from the Fibonacci sequence where each number divided by its successor approaches 0.618 and its reciprocal 1.618. The 61.8% retracement level and 161.8% extension level are based on this golden ratio and are considered the most significant Fibonacci levels in trading.
Can Fibonacci retracement be used for forex trading?
Yes, Fibonacci retracement is one of the most popular tools in forex trading. Currency pairs often respect Fibonacci levels due to their widespread use by institutional and retail traders. The 38.2%, 50%, and 61.8% levels are particularly closely watched in major forex pairs like EUR/USD and GBP/USD.