Fibonacci levels help traders anctipate where a pullback might stop and how far a trend might run. Enter a swing high and a swing low, and this calculator gives you the retracement and extension levels instantly, ready to mark on your chart.
Fibonacci Calculator
Retracement and extension levels from a swing high and low.
Results are estimates for information only, not financial advice. Trading on leverage carries a high risk of losing money.
How To Use The Calculator
- Choose the direction of the move. Pick Uptrend if the price rose from the low to the high, or Downtrend if it fell from the high to the low.
- Enter the swing high and swing low. These are the clear turning points at each end of the move on your chart.
- Read the levels. In an uptrend, retracements are measured down from the high. In a downtrend, they are measured up from the low.
What Are Fibonacci Retracements?
Markets rarely move in a straight line. After a strong move, the price often pulls back part of the way before the trend continues. Fibonacci retracements measure that pullback as a percentage of the original move, using ratios taken from the Fibonacci sequence: 23.6%, 38.2%, 50%, 61.8% and 78.6%.
The 38.2%, 50% and 61.8% levels are the ones most traders watch, and they are highlighted in the results. The 50% level is not a Fibonacci ratio, but it is so widely used that it is included.
There’s limited conclusive evidence to show that Fibonacci ratios definitely have predictive power in the markets – they’re partly useful because so many traders watch them.
Retracements And Extensions
- Retracements (0% to 100%) show where a pullback might end. Traders often look for a buy signal near the 50% or 61.8% level in an uptrend.
- Extensions (127.2%, 161.8%, 200% and 261.8%) show where the price might go if the trend continues beyond the swing high or low. They are popular as profit targets.
Example
EUR/USD rises from 1.0800 to 1.1000. The 61.8% retracement is 1.1000 − (0.0200 × 0.618) = 1.0876. A trader might wait for the price to pull back to around 1.0876 and show signs of turning up before buying, with a stop below the 78.6% level and a first target back at the high or at the 127.2% extension.
Learn more in our guide to forex trading with Fibonacci.