Fibonacci Calculator

How Fibonacci Levels Work in Forex

Fibonacci retracement levels are horizontal lines drawn between a swing high and swing low. They mark where price is likely to pause or reverse during a pullback. The key ratios — 0.236, 0.382, 0.5, 0.618, and 0.786 — come from the Fibonacci sequence and the golden ratio (1.618).

For EUR/USD moving from 1.0900 to 1.1050 (uptrend, range = 0.0150): the 0.618 retracement is 1.1050 − 0.0150 × 0.618 = 1.09573. Traders watch this level for a bounce if they missed the initial move.

Retracement vs Extension

Retracement levels (0 to 1) show where price might pull back to within the swing range. The 0.618 and 0.786 levels are the most common reversal zones. Extension levels (above 1, such as 1.272 and 1.618) project where price might go beyond the swing — these are profit targets.

Combine Fibonacci levels with the pivot points calculator to find zones where multiple methods agree. When a Fibonacci level overlaps with a pivot point, the support or resistance becomes stronger.

Using Fibonacci for Trade Management

Enter at a retracement level with confirmation from price action — a pin bar, engulfing candle, or bounce off the level. Set your stop loss beyond the next Fibonacci level or the swing extreme. Use extension levels as take-profit targets. For position sizing at these levels, use the position size calculator to size your trade based on the stop distance.

Frequently Asked Questions

How do you calculate Fibonacci retracement levels?

From a swing high and low: for an uptrend, Level = High − (High − Low) × Ratio. Key ratios: 0.236, 0.382, 0.5, 0.618, 0.786. Enter your values above to see all levels.

What are Fibonacci extension levels used for?

Extensions project profit targets beyond the swing range. Common targets: 1.272, 1.618, 2.0, 2.618. For uptrends: Extension = Low + (High − Low) × Ratio. Use with a position size calculator to set appropriate take-profit orders.

Which Fibonacci levels are most important?

0.382, 0.5, 0.618, and 0.786 retracements are the most watched. The 1.618 extension (golden ratio) is the most common profit target. These levels work because institutional traders place orders at them, creating self-fulfilling support and resistance zones.

Do Fibonacci levels work in forex?

Fibonacci is one of the most widely used tools in forex technical analysis. It identifies likely reversal zones during pullbacks. Combined with pivot points and candlestick patterns, it's part of many professional strategies. No tool guarantees results — always use a stop loss.