Fibonacci Retracement / Extension Calculations

Fibonacci Retracement Calculator
Level Value

A Fibonacci retracement calculator is a tool used by traders and investors to identify potential support and resistance levels in a financial instrument’s price movement based on the Fibonacci sequence. The Fibonacci retracement levels are used to determine potential reversal points in the price trend. Here are the common Fibonacci retracement levels:

  1. 23.6%
  2. 38.2%
  3. 50.0%
  4. 61.8%
  5. 76.4%

To calculate Fibonacci retracement levels, you need to know the high and low points of a price trend. Here’s how you can manually calculate them:

  1. Identify the peak (high) and trough (low) in the price chart you want to analyze.

  2. Calculate the price range (the difference between the high and low).

  3. Multiply the price range by each of the Fibonacci levels (expressed as percentages) to determine the retracement levels. Here’s the formula for each level:

    • 23.6% retracement level: High – (0.236 * Price Range)
    • 38.2% retracement level: High – (0.382 * Price Range)
    • 50.0% retracement level: High – (0.500 * Price Range)
    • 61.8% retracement level: High – (0.618 * Price Range)
    • 76.4% retracement level: High – (0.764 * Price Range)

These levels indicate potential support or resistance areas where the price may reverse or consolidate.

If you prefer an automated calculator, there are many Fibonacci retracement calculators available online. You can find them on trading websites, trading software, or by simply searching for “Fibonacci retracement calculator” in your preferred search engine. These calculators allow you to input the high and low prices, and they will automatically calculate the retracement levels for you.

Keep in mind that Fibonacci retracement levels are just one tool used in technical analysis, and they should be used in conjunction with other analysis methods to make informed trading or investment decisions.

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