Fibonacci Retracement Calculator

Understanding Fibonacci Retracement

Fibonacci Retracement is one of the most widely used tools in technical analysis. It is based on the mathematical ratios discovered by Leonardo Fibonacci. In trading, this tool helps identify potential support and resistance levels where a price reversal (retracement or pullback) may occur after a strong market move.

Defining the Market Trend

Before applying any Fibonacci tool, traders must first define the overall market trend. The trend represents the general direction in which the price is moving — either up or down. Fibonacci analysis is most effective when used to anticipate a temporary movement against this main trend, allowing traders to spot potential reversal points.

Fibonacci Retracement Concepts

A retracement is a short-term reversal in price movement that occurs within a larger trend. It doesn’t indicate a full change in market direction but rather a pause or correction. Traders use the key Fibonacci ratios — 23.6%, 38.2%, 50%, 61.8%, and 78.6% — to estimate how far the price might pull back before resuming its main trend. These levels act as potential price zones where the market may react.

Uptrend Retracement (Pullback)

An uptrend retracement happens when the market is in a clear upward direction, forming higher highs and higher lows. After reaching a swing high, prices often move downward temporarily — this is known as a pullback. To analyze it using Fibonacci Retracement, draw the tool from the Low Price to the High Price of the recent move. The resulting levels will show potential support zones where buyers may step in and push the market back upward.

Downtrend Retracement (Rally)

A downtrend retracement occurs when the market is moving downward, creating lower highs and lower lows. After a sharp decline, the price may rise temporarily in what’s known as a rally. In this case, apply the Fibonacci tool from the High Price to the Low Price of the move. The generated levels represent potential resistance zones where selling pressure could appear, resuming the main downtrend.

Practical Use of Fibonacci Levels in Trading

To improve accuracy, combine Fibonacci retracements with Pivot Point Calculator, the Trading Risk Calculator, and the Position Sizing Calculator. This ensures proper capital management and creates strong confluence zones for higher-probability trades.

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Fibonacci Retracement & Extension Calculator

High Price

Enter the swing high of the move.

Low Price

Enter the swing low of the move.

Choose Calculation Type Retracement Extension

Trend Direction Uptrend (Low → High) Downtrend (High → Low)

Retracement Levels 23.6% 38.2% 50.0% 61.8% 78.6% 100%

Extension Levels 127.2% 141.4% 161.8% 200% 227.2% 261.8%

Decimal Precision

💡 Tip: Enter both High and Low prices before calculating.