Fibonacci Calculator
Calculate retracement and extension levels for precise entries and targets.
Price Points
⚡ Results update automatically as you type
Fibonacci Levels
Retracement Levels
Potential support zones for pullbacks
Extension Levels
Potential profit targets
Understanding Fibonacci in Trading
The Golden Ratio
Fibonacci numbers are based on the golden ratio (1.618), found throughout nature and markets. Key levels like 38.2%, 50%, and 61.8% often act as support and resistance.
Retracement
Retracement levels predict where price might pull back before continuing the trend. The 38.2%, 50%, and 61.8% levels are most watched by traders.
Extension
Extension levels project where price might go beyond the original move. Common targets are 127.2%, 161.8%, and 261.8%.
🎯 Key Fibonacci Levels
How to Use Fibonacci Effectively
Identify the Trend
Draw Fibonacci from swing low to swing high in uptrends, and high to low in downtrends.
Wait for Confluence
Fibonacci levels are strongest when they align with other indicators like support/resistance or moving averages.
Use Multiple Timeframes
Apply Fibonacci on higher timeframes for major levels and lower timeframes for precision entries.
Set Realistic Targets
Use extension levels for profit targets. The 127.2% and 161.8% are commonly hit in trending markets.
Frequently Asked Questions
What is Fibonacci in forex trading?
Fibonacci in forex trading uses ratios derived from the Fibonacci sequence (0, 1, 1, 2, 3, 5, 8, 13...) to identify potential support, resistance, and price targets. Our Fibonacci calculator automatically computes all key retracement and extension levels for any price range.
How do I calculate Fibonacci retracement levels?
Fibonacci retracement levels are calculated by taking the high-low range and multiplying by Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%). For example, a move from 100 to 200: 61.8% retracement = 200 - (100 × 0.618) = 138.2. Our Fibonacci calculator does this instantly.
What is the Fibonacci sequence and golden ratio?
The Fibonacci sequence is a series where each number is the sum of the two preceding ones: 0, 1, 1, 2, 3, 5, 8, 13, 21... The ratios between consecutive numbers converge to 0.618 (golden ratio), which forms the basis for key Fibonacci trading levels.
Which Fibonacci level is most reliable for trading?
The 61.8% retracement (golden ratio) is considered most important by many traders. However, the 38.2% and 50% levels are also highly watched. Look for confluence with other technical factors like support/resistance and moving averages for higher probability setups.
How do I draw Fibonacci retracement correctly?
For an uptrend: click on the swing low first, then drag to the swing high. For a downtrend: click on the swing high first, then drag to the swing low. Use significant swing points on your chosen timeframe. Our Fibonacci calculator shows all levels based on your inputs.
Can I use Fibonacci on any timeframe?
Yes, Fibonacci works on all timeframes from 1-minute to monthly charts. However, levels on higher timeframes (daily, weekly) tend to be more significant and reliable than those on lower timeframes. Many traders use multiple timeframe Fibonacci analysis.
What's the difference between Fibonacci retracement and extension?
Retracement levels (0-100%) show where price might pull back within the original move - used for entries. Extension levels (above 100% like 127.2%, 161.8%) project where price might continue beyond the original move - used for profit targets.
How do I use Fibonacci for take profit targets?
Use Fibonacci extension levels (127.2%, 161.8%, 261.8%) as take profit targets. After a retracement bounce, price often extends to these levels. Our Fibonacci calculator shows both retracement levels for entries and extension levels for targets.
Why do Fibonacci levels work in trading?
Fibonacci levels work partly due to self-fulfilling prophecy - millions of traders watch these levels. They also reflect natural patterns found throughout nature and mathematics. When combined with other analysis, Fibonacci provides reliable support and resistance zones.
Can I use this Fibonacci calculator for stocks and crypto?
Yes! Our Fibonacci calculator works for any market - forex, stocks, cryptocurrency, commodities, and indices. Simply enter the high and low prices of any swing move to get all Fibonacci retracement and extension levels instantly.