📊Fibonacci Retracement
Enter values to calculate Fibonacci levels
What Are Fibonacci Retracement Levels?
Fibonacci retracement levels are horizontal price zones derived from the Fibonacci sequence that traders use to identify potential support and resistance during a pullback within a trend. They are among the most widely used technical analysis tools across forex, crypto, stocks, and commodities.
The key retracement levels and how they are calculated from a swing high (B) and swing low (A):
Fibonacci Retracement vs Fibonacci Projection
Retracement
Used to find where a pullback may pause or reverse before the trend continues. Measured from swing Point A (Low) to Point B (High).
Projection (Extension)
Used to find where the trend may reach after the pullback ends. Requires three points: A (start), B (end of wave), C (end of pullback).
Fibonacci Levels — Quick Reference
| Level | Type | Significance | Common Use |
|---|---|---|---|
| 23.6% | Retracement | Low | Shallow pullback entry in strong trends |
| 38.2% | Retracement | Medium | First major entry zone after a swing |
| 50.0% | Retracement | High | Psychological midpoint, widely respected |
| 61.8% | Retracement | Very High | Golden ratio — strongest entry zone |
| 78.6% | Retracement | High | Deep retracement before trend continuation |
| 100% | Both | Critical | Full retracement — trend reversal risk |
| 161.8% | Projection | High | Primary extension target post-pullback |
| 261.8% | Projection | Medium | Extended target in strong trending markets |
Frequently Asked Questions
What are the most important Fibonacci retracement levels?
The most widely respected Fibonacci retracement levels are 38.2%, 50%, and 61.8%. The 61.8% level — known as the golden ratio — is considered the most significant, as price frequently reverses or pauses there before continuing in the trend direction. The 50% level is not a true Fibonacci ratio but is included due to its psychological significance.
How do I draw Fibonacci retracement levels?
For a bullish move: identify the swing low (Point A) and swing high (Point B), then enter those values into this calculator. The retracement levels are drawn downward from B toward A. For a bearish move: identify the swing high (Point A) and swing low (Point B) and the levels project upward from B toward A.
What is the difference between Fibonacci retracement and extension?
Fibonacci retracement levels (23.6%–100%) are used to find where a pullback may end within a trend. Fibonacci extensions or projections (100%–261.8%) are used to find profit targets beyond the original swing high or low, projecting where the next impulse wave may reach after a pullback completes.
Do Fibonacci levels work in forex and crypto trading?
Yes — Fibonacci levels are used extensively across forex, crypto, stocks, and commodities. Their effectiveness comes partly from self-fulfilling prophecy: because millions of traders watch the same levels, price tends to react at them. The 38.2%, 50%, and 61.8% retracement levels in particular are closely monitored by both retail and institutional traders.